Bitcoin owners may be prompted to go on a panic sell-off if it drops if its value falls below $60,000 in the coming days. Renowned crypto analyst and FX Pro trader, Alex Kuptsikevich issued the warning.
According to market sentiments, Crypto traders are targeting a break of above $65,000 before the market can be deemed bullish.
CoinDesk reported that Bitcoin experienced a momentary surge to $63,000 on Monday morning, accompanied by a 3% increase in the prices of other Altcoins such as Ether, Solana, and Dogecoin.
Ton the native token of the Tonchain blockchain ecosystem that is related to Telegram led the price surge by rising 7% on Monday morning.
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Bitcoin has been fluctuating between $60,000 and $70,000 since March. The lackluster impact of the much-awaited halving event on Bitcoin Price, coupled with a decrease in inflow from exchange-traded funds, has led to a prevailing bearish market sentiment.
Alex Kuptsikevich clarified in a communication to Coin Desk that the price movement has been defined by a series of declining lows and declining highs, indicating that investors are capitalizing on price rallies to sell their holdings.
There is pressure likely related to asset sell-offs by miners and fears of tighter regulation of cryptocurrencies,” Kuptsikevich said, referring to the drop in mining difficulty after April’s halving
A failure below $60K could trigger something of a panic sell-off. The positive scenario, in our opinion, will become the main one with a rise above $65K, fixing the price at the 50-day moving average and the reversal area in early May,” he added
In addition to this, difficulty in mathematical puzzles for miners and an increase in resources needed to perform them have made the business model for mining crypto unattractive and unprofitable, leading to fewer miners.
Additionally, Alex Kuptsikevich, a crypto analyst, has issued a cautionary statement, while analysts from Ryze Labs, a crypto investment company, have presented an argument regarding the impending impact of short-term bitcoin holders on the overall markets.
They stated that the behavior of short-term Bitcoin holders or those who hold the coin for less than 155 days could largely influence markets in the coming months.
According to an analyst from Ryze Labs, there have been just three occasions where 94% of short-term and long-term Bitcoin holders were profitable. These instances occurred from mid-November 2017 to mid-April 2017, mid-February to mid-April 2021, and most recently, from the end of February 2024 to the beginning of April.
In 2017, short-term investors held Bitcoin with a total value of $117.8 billion, while in 2021, this value increased to $289.9 billion. Throughout these periods, long-term holders and miners were observed to sell their Bitcoin to short-term investors, who typically held onto the cryptocurrency for less than 155 days.
However, after these peak prices, short-term holders incurred various losses leading to them selling back bitcoin to long-term holders. The analyst team at Ryze Labs has noted that this shift has often led to significant bitcoin price falls within four to six months.
