Despite Bitcoin prices rebounding from the October 10th flash crash, expectations for the cryptocurrency have yet to turn bullish. Predictions about the demise of cryptocurrencies are becoming more bearish, especially as sentiment is still trending in a negative direction. The failure of the price to regain $115,000 increases the likelihood of a crash and calls for another bear market become even louder.
Bitcoin price is likely to fall
Cryptocurrency analyst Real Macro highlighted that Bitcoin price could soon hit a rift. This comes as Bitcoin price continues to hold steady near the $110,000 level and has not made any meaningful moves with momentum from there.
This is because cryptocurrencies have shown a number of vulnerabilities during this time, and crypto analysts currently believe that the Bitcoin price is at a “critical inflection point.” Bitcoin prices may rebound further from here and reach new all-time highs. However, with the bears gaining more power, prices could break even further from here.
According to the cryptocurrency analyst, if Bitcoin prices crash here, the result will be a so-called waterfall decline. This is typically a sharp decline in prices towards their yearly lows, which can lead to double-digit declines.
In the case of Bitcoin, crypto analysts believe that if this rift occurs, the Bitcoin price could plummet by more than 50%. Cryptocurrency analysts are therefore advising investors to be cautious and exit the market before this major crash occurs.
Not only is the price expected to plummet by more than half, but analysts have set a target of less than $30,000. This would mean a 70% drop in price, likely leading to an even broader sweep of altcoins in the market.
Currently, the Bitcoin Fear and Greed Index still shows great fear in the market. Earlier this week, the index entered extreme fear territory, suggesting that no liquidity was flowing into the market. Although there has been some improvement due to heightened anxiety, investors are still very cautious.
Nevertheless, such periods are often the best time to enter the market as they provide a good entry for investors. However, with the price of Bitcoin still hovering above $100,000, there are many questions about what will happen if the price crashes further.
Featured image from Dall.E, chart from TradingView.com
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