In the wake of Bitcoin’s drop below the $60,000 level, analysts are cautioning that the crypto king could experience further decline. DonAlt, an analyst known by a pseudonym, has informed his 566,900 followers on X, a social media platform, that Bitcoin’s bearish trend could persist unless it reclaims a crucial level of support on the weekly chart. He advises caution until Bitcoin regains $63,800 or reaches lower support levels, indicating that the risk is currently off.
Source: DonAlt/X
Bitcoin recently hit a low of around $59,700 within the last 24 hours, but has since recovered some of its losses and is currently trading at $60,243 at the time of writing.
The Flow Horse, another pseudonymous analyst, suggests that it’s worth considering the possibility of Bitcoin declining to the $40,000 range. He highlights that many individuals in his social media timeline and chats are overly confident about Bitcoin’s potential lows, failing to consider the possibility of it dropping to the $40,000s again. He believes this mindset is shortsighted for obvious reasons.
Meanwhile, Benjamin Cowen, a widely followed analyst with 802,000 YouTube subscribers, discusses in a new video that Bitcoin may be heading lower based on its historical correlation with the US10Y (10-year yields) rate. He explains that when the longer yield curve starts to rise, Bitcoin often fades. By examining the 10-year yield, Cowen notes that Bitcoin tends to fade when the yield spikes, such as in July 2023 and the year before in 2022 leading up to October. If the 10-year yield starts to spike again in October, it could correspond with Bitcoin displaying seasonal weakness.
Source: Benjamin Cowen/YouTube
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