Markets
Will July 2024 be the next May 2021? Has the Bear Market Begun? Will BTC Price Drop Below $50,000?
Crypto markets are bleeding as rounds of nearly 47,228 BTC from Mt. Gox’s cold wallet have been moved in preparation for a $9 billion payout. Market participants who were hopeful despite the BTC Price falling below $60,000, now they seem to be in panic and fear, guilt and frustration, saltiness and hatred, sarcasm and humor.
Along with the Mt. Gox scare, the German government also transferred 1300 BTC to CEX, which holds over 40,000 BTC. Hence, both of them are collectively contributing to the BTC price decline that marked lows below $53,500. After witnessing the second largest liquidation in its historyIn the immediate aftermath of the FTX collapse, market participants may notice that the current situation is similar to that of May 2021.
Crypto markets crashed in May 2021 following an SNL event hosted by Tesla CEO Elon Musk, which triggered a massive sell-off in the price of DOGE and then spread across the markets. However, the historical pattern suggests that the current correction has already happened in the recent past and hence the possibility of a reversal looms over the markets.
In August 2023, BTC price turned sharply down from the consolidation zone around $30,000 and dropped over 15% to mark lows near $25,000. The RSI also dropped to base levels and took over a week to climb back into the positive range. However, the price maintained an upward consolidation until early Q3, followed by a strong uptrend to mark a new ATH.
The trade setup looks similar to the previous one and hence, BTC price is expected to mark lows near $50,000 or slightly below the levels in the coming days. Once the sellers or weak traders are eliminated, the token is expected to start a recovery by climbing back above $50,000 and holding strong support until a fresh influx of buying volume returns to the markets.
Collectively, historical chart patterns suggest that Bitcoin price remains on a bullish trajectory, as long as the trend reverses before reaching crucial support.