\n\t\t\t\t\t\t\t\t\tCan the valuation plummet below $50K in the short term?\t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n
The largest cryptocurrency by market capitalization has been nosediving lately, with its price posting another substantial decline over the past 24 hours.<\/p>\n
Multiple analysts believe the valuation could reach new lows in the near future, while one key indicator suggests a rebound could be on the horizon.<\/p>\n
How Much Lower?<\/h2>\n
There\u2019s no way to soften what\u2019s been happening to BTC lately. Its price has lost over $20,000 in the past month alone, and several hours ago it dipped<\/a> to nearly $61,000, the lowest point since early February. The reasons behind this carnage are many and various: Strategy\u2019s historic decision to sell<\/a> some Bitcoin, the escalating conflict in the Middle East, the massive outflows<\/a> from spot ETFs, and the bear market reigning across the broader crypto market.<\/p>\n Currently, the asset trades at around $62,500, which is a slight comeback, but according to numerous industry participants, the worst is yet to come.<\/p>\n Ali Martinez recently claimed<\/a> that the plunge below $72,000 has put BTC in \u201ca vulnerable position.\u201d He said that, based on the MVRV Pricing Bands, the next major support is between $50,000 and $54,000.<\/p>\n For his part, X user Ted argued<\/a> that BTC\u2019s \u201chead-and-shoulders\u201d breakdown target is still not complete. He described $49,000 as \u201ca good bottom zone,\u201d drawing parallels to the August 2024 low.<\/p>\n Somewhat expected, the major collapse of BTC\u2019s price gave Peter Schiff the opportunity to make a highly pessimistic prediction. The well-known crypto critic and outspoken proponent of gold forecasted<\/a> that the valuation could nosedive to $20,000 if it breaks $50,000.<\/p>\n \u201cIt should be a quick fall below $20K, which should be a big enough drop to shake the conviction of long-term HODLers, causing many to finally throw in the towel,\u201d he added.<\/p>\n<\/blockquote>\n Contrary to the bloodbath and the predictions of a further collapse ahead, BTC\u2019s Relative Strength Index (RSI) suggests it might be time for a resurgence. The technical analysis tool is often used by traders to spot potential price reversal points, as it indicates whether the asset is oversold or overbought.<\/p>\n It runs from 0 to 100, and anything below 30 indicates that the price has fallen too much in a short period of time and could be due for a comeback. On the other hand, readings above 70 signal that a pullback might be on the horizon. Just a few hours ago, the RSI dropped to 11, its lowest level in four months, and has since risen to approximately 16.<\/p>\n \u00a0<\/p>\n LIMITED OFFER for CryptoPotato readers at Bybit: Use this link<\/a> to register and open a $500 FREE position on any coin!<\/b><\/p>\n<\/div>\n<\/div>\nYou may also like:<\/h3>\n
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Light at the End of the Tunnel?<\/h2>\n
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