Bitcoin price under pressure: a fall below $50,000 imminent?

The Bitcoin market is going through a zone of turbulence, as analysts predict a possible drop in the price below the symbolic mark of $50,000. This worrying outlook is explained by evolving liquidity conditions and worrying technical signals.

Bitcoin falls sharply

Is liquidity at half mast, a harbinger of a correction?

Renowned analyst Cole Garner recently shared his concern about the current state of the market. According to him, the contraction of liquidity on the Bitcoin chain is a worrying signal, suggesting a potential capitulation of investors.

On-chain liquidity is tightening: I sense a capitulation coming ”, he declared on the X platform (formerly Twitter). Garner relies in particular on the Liquid Vision index, which measures the overall liquidity provided by central banks. This indicator looks ready to give a buy signal, but one last decline could occur before a rebound.

Another worrying element is the dwindling supply of stablecoins, particularly Tether (USDT) and USD Coin (USDC). This reduction could limit purchasing power in the crypto market, putting downward pressure on the price of Bitcoin.

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Contrasting prospects for the future of Bitcoin

Despite these short-term bearish signals, Garner remains optimistic about the long term. He highlights that the overall market structure remains bullish, with successive highs set recently.

Some market participants are still hoping for a trend reversal before the end of October, traditionally a favorable month for Bitcoin. External factors, such as a possible revival of economic stimulus measures in China, could catalyze a new influx of capital into cryptos.

Experienced trader Peter Brandt goes further, projecting Bitcoin to hit $135,000 within a year, provided certain crucial support levels are maintained.

With Bitcoin currently trading around $61,000, the market is holding its breath. A possible correction below $50,000 could offer an interesting buying opportunity for long-term investors, ahead of a possible bullish rally. In this uncertain context, caution and in-depth analysis remain essential for all investors.

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