Bitcoin's Potential Fall Below $60K Could Trigger Widespread Panic Selling, Crypto Analyst Warns: 'There Is Pressure Likely...'

Crypto trader Alex Kuptsikevich said that a drop below the $60,000 mark of Bitcoin BTC/USD could trigger a panic sell-off.

What Happened: Kuptsikevich noted that the price action has been marked by a series of lower lows and lower highs, indicating investors selling into strength on price rallies, CoinDesk reported on Monday.

He stated, “There is pressure likely related to asset sell-offs by miners and fears of tighter regulation of cryptocurrencies.”

Kuptsikevich also suggested that a positive scenario would be a price rise above $65,000, which would confirm the price at the 50-day moving average and the reversal area in early May.

Earlier this week, BTC briefly surpassed $63,000, stimulating a rise in both alternative and major tokens. Ethereum ETH/USD, Solana’s SOL/USD, and Dogecoin DOGE/USD all experienced a 3% increase within 24 hours, primarily following BTC’s ascent. TON, the token of the Tonchain blockchain linked to the messaging service Telegram, led the rise among major tokens with a 7% jump.

Since March, BTC has been largely oscillating between $60,000 and $70,000. The highly anticipated halving event in April turned out to be a sell-the-news play due to a general lack of market catalysts. In recent weeks, inflows from exchange-traded funds (ETFs) have decreased, contributing to a bearish sentiment.

See Also: Bitcoin Clinging On To $60K, Ethereum, Dogecoin Bleed: ‘Bitcoin’s Final Move Will Be The Most Aggressive,

Why It Matters: Underlying factors such as falling consumer sentiment, missing economist forecasts, and a looming $2 billion of token unlocks over the next ten weeks have put pressure on the cryptocurrency markets.

Leading cryptocurrencies remained range-bound over the weekend, with bears continuing to provide tough resistance to the market's drive for sustained gains. Bitcoin, the largest cryptocurrency by market cap, meandered in the $61,000 zone, after witnessing a sharp correction from $63,000 last Friday.

Price Action: On Monday, Bitcoin was trading 1.87% higher at $62,735.32 at the time of writing, according to Benzinga Pro.

Read Next: Trump’s Crypto Pivot Is Bullish…But For Whom? Mad Crypto Money With Ivan

Image via Shutterstock

Engineered by Benzinga Neuro, Edited by Pooja Rajkumari

The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.

Market News and Data brought to you by Benzinga APIs
Posted In: Analyst ColorCryptocurrencyNewsMarketsAnalyst RatingsGeneralAlex KuptsikevichBitcoinPooja RajkumariStories That Matter
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!