A Bitcoin Dip Below $60k Could Spark Panic, FxPro Crypto Analyst Warns

While Bitcoin continues to struggle to find its feet post-halving, analyst Alex Kuptsikevich stated on Monday that investors could be heading for a mass exodus of the asset if it loses the $60,000 price level. 

Bitcoin has managed to keep above $60,000 in recent weeks, slightly falling as low as $57,000 in late April before bouncing to a macro-economic boast. However, Kuptsikevich believes the crypto asset might turn bearish if it goes below $60,000 again.

“A failure below $60K could trigger something of a panic sell-off,” Kuptsikevich stated

Incoming Panic?

The FxPro trader cited increased sales among miners and tighter cryptocurrency regulation as the reasons behind his analysis. He also pointed out that reduced demands from US exchange-traded funds (ETF) and the looming prospect of $3.6 billion worth of token unlocks over the next ten weeks have added to the pressure on cryptocurrency markets.

Against an earlier bullish feeling among Bitcoin miners this year, an inconsiderable price movement for Bitcoin has forced them to start selling their crypto bags. An increase in mining difficulty also means they have to sell off their mined assets to stay afloat.

A recent renewed clampdown by US regulators has also affected market flow, with Uniswap, Robinhood, and the Ethereum Foundation all getting involved with the SEC. Such involvement has dimmed the light on a possible Ether ETF approval slated later in May.

The incessant inflows from US ETFs, which were a major catalyst in Bitcoin’s match from $46,000 last year to a new all-time high of $73,000, seem to have withered away, further spurring bearish sentiments in the market. Digital investment products have seen weeks of outflows, signaling panic among investors.

$65k: A Bullish Breakout

Kuptsikevich, however, stated that Bitcoin reclaiming the $65,000 level would bolster bullish market sentiment. He noted that a break above $65,000 would signal a confirmation of support levels, particularly around the 50-day moving average.

“The positive scenario, in our opinion, will become the main one with a rise above $65K, fixing the price at the 50-day moving average and the reversal area in early May,” he stated.

Bitcoin rebounded on Monday to $63,000 after an enduring price downturn over the weekend. The broader market followed suit, with Shiba Inu, Solana, and Dogecoin moving significantly. At press time, Bitcoin was trading at $63,282 with a market cap of $1.2 trillion.