There is a Risk of Bitcoin Price Falling to 48 Thousand Dollars, Analyst Predicts It Will Drop to 16 Thousand Dollars in 2022
The recent drop in Bitcoin price below $67,000 has sparked debate among investors and fears of further declines. Famous analyst and veteran trader Peter Brandt, who correctly predicted that Bitcoin would fall to $16,000 in 2022, is now warning that the cryptocurrency could fall to $48,000.
However, he stated that if it cannot maintain critical support levels, a decline may occur. Meanwhile, all eyes are on Bitcoin’s next move as bold predictions and major options expire.
Analyst Predicts Bitcoin Price Will Drop to $48 Thousand
The recent Bitcoin drop has sent ripples through the crypto community. The flagship cryptocurrency’s failure to hold above $67,000 has led to intense speculation about its future trajectory.
Crypto market expert Peter Brandt, who is also a seasoned trader with a track record of accurate predictions, issued a strong warning. In a recent post on platform X, he outlined the potential path of Bitcoin’s decline.
In a recent X post, Peter Brandt shared Bitcoin’s price chart, stating that $65,000 and $60,000 are critical levels for Bitcoin’s near future. According to Brandt, a decline below $65,000 could push the price towards $60,000. Conversely, a decline below the $60,000 level could cause Bitcoin to drop to $48,000.
Source: Peter Brandt, X
But while these are the simplest interpretations, the market can be unpredictable, Brandt says. In this context, he stated the following:
Also Read: Bitcoin ETF Outflows Reach $228 Million Amid BTC Price Drop, What’s Happening?
Macroeconomic Factors and Options Expiration in Focus
The latest inflation data from the US Labor Department shows signs of cooling. In this context, May Consumer Price Index (CPI) and Producer Price Index (PPI) reports show that inflationary pressures in the country have decreased.
It is noteworthy that this development may affect the US Federal Reserve’s approach to interest rates. However, if the Fed adopts a more dovish stance, this could provide some relief to the crypto market. A potential policy change could cushion further declines in Bitcoin price and provide a possible lifeline for investors.
Meanwhile, another critical factor affecting the Bitcoin price is the recent expiration of 20,000 Bitcoin options on June 14, 2024. Options expiration events often cause significant volatility as traders adjust their positions. Notably, the maximum squeeze point for this expiration is set at $68,500, indicating the price level at which most options will expire.
As of writing, Bitcoin price remained in the red zone as it crossed the $67,000 mark. In the last 24 hours, its price hit a high of $68,337.23 and a low of $66,304.57; This reflects the volatile scenario in the market.
Additionally, trade volume decreased by 24.55% to 27.17 billion dollars. However, despite the decline in its price, Bitcoin Futures Open Interest increased by 0.98% in the last 4 hours to 522.67 thousand BTC or $35.14 billion.
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A seasoned professional with 3 years of experience in the financial market, Rupam has honed his skills as a meticulous research analyst and insightful journalist. She enjoys exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor at Coingape, Rupam’s expertise goes beyond traditional boundaries. His contributions include breaking news, examining AI-related developments, providing real-time crypto market updates, and providing insightful economic news. Rupam’s journey is marked by his passion to demystify the intricacies of finance and deliver impactful stories that will resonate with diverse audiences.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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