Bitcoin Support Levels Tested: Will $72K Hold or Break?
The lack of investor optimism in cryptocurrencies, which has fallen to levels not seen before 2022, may prevent an immediate market recovery. Moreover, Bitcoin may suffer a modest dip below the $72,000 support.
The Bitcoin price dropped more than 28% from its record high of over $109,000 on January 20 to a three-month low of $78,197 on February 28. Iliya Kalchev, dispatch analyst at digital asset investment platform Nexo, predicts that when the market realigns, Bitcoin may see a more significant pullback toward the low $70,000 region.
Yet, a significant drop below $75,000 seems less likely. While there might be a temporary backtrack as the market fills in the gaps left during the rapid climb, Bitcoin is more likely to establish firm support in the $72,000 to $80,000 range. This support could provide a foundation for a more sustainable recovery, reducing the likelihood of a deeper retracement,
Kalchev
Bitcoin Bottoming Out? Analysts Predict a Comeback Amid Extreme Fear!
Analysts predict that Bitcoin will hit its bottom and begin to rise again in the upcoming weeks, but investor skepticism continues to be a barrier to the cryptocurrency market. According to data from Alternative.me, the Crypto Fear & Greed Index, which gauges the general sentiment of the cryptocurrency market, dropped to close to a three-year low of 20 in July 2022.
Investor sentiment last dipped to such levels in June 2022, a month after Bitcoin plummeted to $17,500, a monthly decrease of more than 37%. Bitfinex analysts reported that numerous external and crypto-specific variables contributed to the drop in investor sentiment.
Overall, the combination of a sharp Bitcoin price drop, regulatory uncertainty, security breaches, and declining altcoin valuations has led to extreme fear in the crypto market. Although not a component of the index, we are also consistently seeing new highs in long liquidations across numerous flushes such as on Feb 3rd and the current 24-27th February move down,
Bitfinex analysts
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