Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions.
As the much-anticipated Bitcoin halving approaches, analysts are sounding the alarm on potential price drops. CryptoQuant, a leading cryptocurrency analytics platform, has warned that Bitcoin's price could plummet to $52,000 if certain key levels are breached.growing uncertainty on the Bitcoin derivatives market. The platform pointed out that derivative traders are showing far more caution than in previous halving cycles.
The caution among derivatives traders is reflected in the declining open interest and funding rates, as illustrated in the BTC chart. Open interest refers to the total number of outstanding derivatives contracts, while funding rates indicate the cost of holding long positions relative to short positions.According to CryptoQuant, if Bitcoin's price breaks below the $60,000 mark, which it is currently hovering just above at $61,723, the cryptocurrency could see a decline to $52,000.
These institutional players often have a longer-term investment horizon and may be more inclined to accumulate Bitcoin during price dips, viewing them as buying opportunities rather than reasons to panic. Their presence could, therefore, play a crucial role in stabilizing the market and supporting the price around the $60,000 level.
As Bitcoin's halving event looms closer, the crypto market is bracing for potential volatility. While CryptoQuant's warning of a potential drop to $52,000 is cause for concern, the strong presence of institutional investors could provide some support to the price.With over three years of immersive experience in the crypto industry, Mushumir is a seasoned crypto writer dedicated to unraveling the complexities of blockchain technology and decentralized finance.
Coin Coin Latest News, Coin Coin Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: Utoday_en - 🏆 295. / 63 Read more »
Source: Crypto_Potato - 🏆 568. / 51 Read more »
Source: Crypto_Potato - 🏆 568. / 51 Read more »