After a bearish April, Bitcoin is facing a significant market sell off, causing a drop in market cap by over 6% in the last 24 hours, now resting at $1.13 trillion.
However, top market analyst Michael van de Poppe remains cautiously optimistic, suggesting that bitcoin’s correction might be nearing its end.
A Potential Rebound
Notably, Bitcoin has recently plunged to the $56,000 mark, its lowest level since February 28, underscoring the severity of the correction. As of the latest data, its price stands at $58,800, marking an 8% decrease since May 1st.
Several market experts are coming up with their predictions on BTC’s next move amid rising uncertainty. The tumble of prices from the $65,000 level to the $56,000 left market participants in a state of panic and doubt about bitcoin’s future.
Van de Poppe highlights that bitcoin has declined by 20% from its recent highs, hinting at the possibility of further downside. He emphasizes that, while a rebound is expected, the crucial range to monitor lies between $56,000 and $58,000.
Bitcoin Sell Off: Price to Dip to $40K
Commenting on bitcoin’s bloodbath, renowned trader Peter Brandt predicts a potential pause for bitcoin before its next upward rally. Brandt’s analysis suggests that bitcoin could dip into the high $40,000s before resuming its bullish trajectory.
The analyst notes the history of bitcoin corrections since 2015. Despite acknowledging a 25% probability of a market top for bitcoin at $74,000, Brandt remains cautiously optimistic about the ongoing bull market.
However, he warns of potential corrections accompanying the upward trend, with bitcoin’s price potentially correcting by over 25% from current levels.
Notably, bitcoin has not revisited the $40,000 mark in the past three months, further emphasizing the importance of Brandt’s proposed pit stop.
Traders Facing Significant Losses
The downturn has left traders facing significant losses. As per the latest data from Coinglass, thousands of traders were liquidated in the past day, losing over $158 million in bitcoin.
It is important to note that this retest of the $56,000 range comes two weeks after the halving event on April 19. Similar intense selling pressure was observed before the halving, with bitcoin dropping to $60,000 from its recent all-time high of $73,850.
Meanwhile, market watcher Rekt Capital highlights that bitcoin’s drop marks the deepest retracement (-23.6%) in this emerging bull cycle, mirroring the -22.9% retrace from early 2023.
Despite this, the market analyst maintained confidence in an imminent bullish comeback. He stated:
“Generally, there are two key takeaways about retracements in this current cycle: The closer Bitcoin gets to a -20% retrace, the better the opportunity becomes, the longer the pullback, the higher the chance an impending bottom will be reached.”
While bitcoin faces a significant correction, analysts like van de Poppe and Brandt see potential for a rebound, albeit with caution. The next moves in bitcoin’s price trajectory will be crucial in determining the direction of the overall digital asset market.
