The recent collapse in Bitcoin prices appears to have triggered a series of sell-offs that continue to put bearish pressure on the cryptocurrency. This in turn affected the entire market, causing altcoins to suffer heavy losses during this time. Although there are still hopes for a quick recovery, analysts are warning investors that Bitcoin prices are likely to fall further before recovering. Nevertheless, there remains hope that digital assets will bottom out and rise again.
Why Bitcoin price is likely to crash before recovering
Pseudonymous crypto analyst Setupsfx has shared the roadmap Bitcoin price could follow to once again break above $126,000 and set a new all-time high. Unlike those hoping for a quick rebound, crypto analysts warned that the digital asset is likely to crash first before seeing a green light on the charts.
Bitcoin prices have already topped $90,000, and conditions remain weak for the pioneering cryptocurrency. As a result, profit-taking will intensify and analysts expect the stock to fall further. The next major level is currently between $60,000 and $70,000, which means Bitcoin prices will once again plummet by more than 20%.
However, analysts expect this to be the bottom, so a crash to $60,000 will influence the next bullish trend. Therefore, it would be ideal to buy BTC around the $60,000 to $70,000 level, Setupsfx explained. Once the bailout rebound begins, analysts expect prices to reach $150,000.
Nevertheless, crypto analysts caution investors to always consider Bitcoin price volatility when investing. Therefore, it is important to practice proper risk management, as there is no guarantee that digital assets will perform as expected.
Analysts are bearish only in the short term
The theory that the price of Bitcoin will crash before it recovers is supported by virtual currency analyst Hypercain, who also shares his own predictions for virtual currencies. The analyst also expects Bitcoin prices to fall below $70,000 before bottoming out.
However, the overall consensus seems to be that the price of Bitcoin could begin to rebound once it has fallen about 40% from its all-time high. Therefore, the decline is likely to continue as investors dump Bitcoin in hopes of buying back the cryptocurrency at a lower price.
Featured image from Dall.E, chart from TradingView.com
