Altcoins are painted red while the BTC price has slightly recovered. At the time of writing, it is above $56,200. Bitcoin (BTC) fell to $53,485 today, losing ground due to weeks of negativity. Moreover, the continuation of MTGOX transfers and sales by the German government may prolong the current weakness.
Bitcoin (BTC) Dropped
Bitcoin has dropped to its lowest level since February, triggering deeper dips for altcoins. Some are approaching last year’s lows, while most have fallen to their end-of-2023 prices. Blockstream’s founder and CEO, Adam Back, stated that such events can happen in bull markets and that investors should buy the dip instead of panicking.
The German government’s liquidation of Bitcoin assets and rumors that a significant portion of MTGOX repayments will be converted to cash and returned have led to the drop. It is unknown how much of the payments in BTC and dollars will be in cash.
According to CoinGlass data, crypto liquidations in the last 24 hours reached $665 million, the highest level in two months. Some analysts believe BTC will bottom out at $50,000. However, in such an oversold environment, especially with ETFs not yet reaching their full potential, it is not an exaggeration to think investor interest will be strong.
Bitcoin (BTC) Price Prediction
BTC, which hovered between $56,552 and $73,777 for a long time, must first return to this range. At the time of writing, the price was below the base, increasing fears of deeper dips. Bulls trying to reclaim $56,552 faced sales at $57,000 at the time of writing. Still, maintaining $56,000 is important.
In a possible recovery, we might see profit-taking at $62,055. We have been writing for a long time that this level needs to be maintained as support, and as it falls below, another acceptance period begins where sales accelerate.
If the decline continues, there will be a new bottom daily, and breaking it could test $50,000. However, if there is a return to $62,055 from here and this level turns into solid support, things will get back on track for the bulls.
