Bitcoin at Risk of Panic Sell-Off as Price Dips Below $60,000, Analyst Warns

According to FxPro trader Alex Kuptsikevich, Bitcoin (BTC) could face a panic sell-off if its price falls below $60,000 in the near future. Crypto traders are currently targeting a break above $65,000 before sentiment can be considered bullish. BTC temporarily rose above $63,000 in European morning hours on Monday, causing alternative and major tokens to also increase in value. However, BTC has largely remained within a range of $60,000 to $70,000 since March, with the halving event in April resulting in little market movement. Flows into exchange-traded funds (ETFs) have decreased in recent weeks, contributing to a negative outlook. The drop in mining difficulty after the halving has placed pressure on miners and raised concerns about tighter regulation of cryptocurrencies, according to Kuptsikevich. He predicts that a price rise above $65,000 and fixation at the 50-day moving average and early May’s reversal area would indicate a more optimistic scenario. Ryze Labs analysts have noted that the behavior of short-term Bitcoin holders, defined as those who hold the coins for less than 155 days, could significantly impact markets in the coming months. Short-term holder losses have surged in the past following periods where almost all long-term and short-term Bitcoin holders were profitable. The analysts warn that a Bitcoin price drawdown similar to past cycles could occur if supportive factors weaken.