The crypto space is currently facing bearish signals as the price of Bitcoin has failed to maintain the crucial level at $42,000, slip up to $39,909 at the time of writing. The American financial services provider Deutsche Bank even foresees this more drops In the coming months, Bitcoin’s value is expected to fall below $20,000.
Deutsche Bank predicts a huge drop in Bitcoin
Reports from Bloomberg, citing a recent survey conducted from January 15 to January 19, 2024 by Deutsche Bank, reveals investors’ sentiments regarding volatility and future trajectory of the price of BTC. The survey, which assessed more than 2,000 people in the United States, United Kingdom and the Eurozone, found that a third of people surveyed expect a significant drop in the price of Bitcoin to values below $20,000.
The substantial decline is expected to occur around January 2025. Although the majority of people expect a significant decline Regarding the value of Bitcoin, the survey also indicates that 15% of people believe so Bitcoin’s price will consolidate between $40,000 and $75,000 by the end of 2024. Additionally, about 10% of respondents think Bitcoin could fall between $20,000 and $40,000.
It is important to note that the price of BTC has seen major declines in recent weeks. At the time of writing, the cryptocurrency is now trading below $40,000 rose to over $45,500 earlier in January this year.
This unprecedented drop is raising concerns in the crypto space as Bitcoin’s price is moving in the opposite direction than most crypto investors and enthusiasts were previously projected. Various crypto analysts predicted that the price of Bitcoin could rise to $50,000 after its approval Discover Bitcoin ETFs. However, Bitcoin gave up most of its gains after the ETF approval and has seen severe declines since then.
BTC bulls vie for control from bears | Source: BTCUSD on Tradingview.com
Analyst Reveals Key Factors That Could Break BTC’s Price Slump
Popular crypto analyst Ali Martinez has joined X (formerly Twitter). reveal key technical price elements that could stop further decline in the price of Bitcoin. Martinez shared a chart published on TradingView that depicts complicated price movements and patterns for Bitcoin.
The crypto analyst revealed that a weekly closing price below $38,000 on the Bitcoin chart could mean a potential price drop, with the next significant support level expected around $33,000. He said this key area is a critical zone characterized by a convergence of three major technical indicators, including a parallel channel lower limit, a Fibonacci retracement level of 0.5 and a 50-week simple moving average.
According to Martinez, the combination of these critical factors creates a great line of defense for Bitcoin’s price, potentially providing a support zone to prevent future declines in the cryptocurrency.
Featured image from Analytics Insight, chart from Tradingview.com
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