Analyst Warns: Bitcoin Nears Dangerous Territory – $40,000 On The Horizon?
16 August 2024 - 2:30PM
NEWSBTC
Bitcoin is trading for $59,545, a slight increase of 0.5% in the
past 24 hours. Although little, this surge in its price is quite
noteworthy as it comes against the backdrop of Bitcoin’s price
plunging as low as $57,812 earlier today. Regardless of this modest
recovery, a recent analysis by a CryptoQuant author on the
CryptoQuant QuickTake platform has revealed that Bitcoin might now
be approaching a precarious position. Related Reading: Crypto
Analyst Reveals What Could Drive The Bitcoin Price To $48,000 Bears
At The Gates? Analyzing BTC’s Vulnerable Stance According to the
CryptoQuant analyst Grizzly, Bitcoin’s Net Unrealized Profit/Loss
(NUPL) metric—a tool used to gauge the market’s profit or loss
status by comparing unrealized profit and loss—hovers near a
pivotal threshold—0.4 level. Grizzly disclosed that this level
historically acts as a vital juncture, either as support that
boosts the market’s spirits or as a resistance that spells a
downturn. Will the bears seize control of the market? “The NUPL
metric is currently positioned near a critical level. Historically,
the 0.4 level has served as a significant point of support and
resistance.” – By @GrizzlyBTClover Read more
👇https://t.co/Q0Nuwu6Xz8 pic.twitter.com/sePvAvWg44 —
CryptoQuant.com (@cryptoquant_com) August 15, 2024 Current data
suggests that Bitcoin is teetering close to this level, and a dip
below could firmly hand the reins over to the bears, potentially
dragging the market into a bearish phase. According to Grizzly, the
implications of such a move could see Bitcoin’s price retract to as
low as $40,000, a major decline from its current market prices. The
analyst particularly noted: Data shows that a breach below this
[0.4] level often marks the onset of a substantial downward trend.
If the index continues its downward movement, it’s reasonable to
anticipate that the bears could take full control of the market. In
such a scenario, the price could drop to around $40,000. Meanwhile,
despite these ominous signs, it’s worth approaching the revealed
data with a balanced perspective. Grizzly pointed out that the
current decline in Bitcoin’s value while concerning, has not
yet escalated to a level that conclusively signals the end of its
bullish trajectory. Historical data supports cautious optimism, as
previous instances have shown that Bitcoin can rebound from similar
positions, defying bearish expectations and sustaining its upward
trend. Bullish Take On Bitcoin On the flip side, historical data
may also suggest a potential rebound for Bitcoin. Earlier
today, a renowned analyst in the crypto space known as Titan of
Crypto on X disclosed an interesting recurring trend in Bitcoin.
Related Reading: Bitwise CIO Reveals Three Super Bullish Signals
From Bitcoin ETFs According to Titan of Crypto, “historically, the
4th month after the halving has always been bullish for BTC,
closing above the halving price.” The analyst added: “If this
pattern repeats, September could be a bullish month above $66,000.”
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