Bitcoin Price Faces Potential Fall Amid Bearish Indicators
By: Eva Baxter
Bitcoin, the flagship cryptocurrency, is grappling with a significant downturn, with its price retreating nearly 26% from its all-time highs. Current market dynamics are reminiscent of previous bearish phases, inciting speculation over whether history might repeat itself.
Market expert Ali Martinez recently highlighted the emergence of a sell signal from the SuperTrend indicator, infamous for predicting significant downtrends in Bitcoin’s past. Similar signals previously predated a staggering 67% price drop from $69,000 to about $17,000. Although major changes, such as the advent of exchange-traded funds (ETFs) and new digital asset treasuries (DATs), have taken place since then, the specter of a similar bearish scenario looms large.
At present, Bitcoin is hovering just above $94,500. Should the historical pattern of price drops continue, Bitcoin could potentially fall to around $31,185. Analyst Mr. Wall Street also suggests that Bitcoin’s recent peak might be $126,000, but sees potential for a decline to between $54,000 and $60,000 by the end of 2026. This analysis seems in alignment with the idea that Bitcoin may be embarking on a bear market, characterized by prolonged periods of declining prices.
The emergence of a 'death cross' signal further complicates the outlook for Bitcoin. According to analyst Doctor Profit, this pattern involves the 50-day moving average falling below the 200-day moving average, often preceding rallies. However, he noted that this particular occurrence happened with Bitcoin trading below its 50-day exponential moving average – a departure from historical trends, suggesting differing market dynamics.
The bearish sentiment among traders has been exacerbated by negative trends in ETF sales and whale net volume, exerting added pressure on Bitcoin's value. The average entry price for Bitcoin buyers in recent weeks stands at approximately $94,600, and any drop below this threshold could stimulate fresh selling pressures. Historically, market participants tend to offload their holdings at breakeven or slight losses, which raises concerns about further depreciation. Consequently, Doctor Profit concludes that the culmination of ETF and whale selling, alongside breakeven sellers, poses a significant risk to Bitcoin’s price stability.
