Although Bitcoin has reclaimed the $56,000 price level in the last few hours, its sudden drop below $54,000 On July 5, he reminded investors about intense volatility are related to the market. In a broader time frame, Bitcoin has fallen by 7% and 20.25% over the past seven and thirty days, respectively.
While many crypto traders and analysts are still bullish on the long-term bull run, the sudden price drop did not come as a surprise to some. In particular, crypto trader @TheFlowHorse reported that the drop to $53,000 coincided with his target of $52,000. Likewise, CryptoQuant CEO Ki Young Joo noted the possibility of Bitcoin falling to $47,000.
Bitcoin May Fall to $47,000
According to Ki Young Ju, Bitcoin is still in a bull market over a longer time frame that extends into early 2025. This school of thought echoes many other Bitcoin price predictions, especially over the long term. Despite this bullish outlook, market participants are currently struggling with short-term bearish conditions.
As Ki Young-ju noted, this uncertainty opens the possibility of the world’s leading digital currency falling to a chilling $47,000 before it regains its footing. With the cryptocurrency market in a prolonged slump since early June, this bearish scenario seems increasingly plausible. Bitcoin, in particular, has lost billions in value, and investor confidence is wavering.
$112k at the peak of the cycle. https://t.co/beKpUVkNXL pic.twitter.com/Esj02BYms4
— Ki Young Ju (@ki_young_ju) July 5, 2024
Young Ju warns traders not to take long or short highly leveraged positions based on his long-term bullish outlook due to the prevailing uncertainty. When asked what his long-term price target for Bitcoin is, he growth noted to $112,000 at the peak of the cycle. This forecast is based on the realized market cap of BTC since July 2010.
Bearish Case for Bitcoin
At the time of writing, Bitcoin is trading at $56,520, up 4.67% since its recent dip below $54,000. However, despite this price recovery, the cryptocurrency faces significant downside risk. further amid whale saleswhich amounted to more than $1.7 billion in BTC over the past 30 days. The defunct crypto exchange Mt. Gox also begins to pay off debts to creditors in BTC after 10 years of inactivity. This is expected to release $2.71 billion worth of Bitcoin supply into the market, potentially increasing selling pressure.
A reversal to the downside is not yet ruled out. If Bitcoin falls to $47,000, it will mean a 16% drop from the current price level. Market participants continue to wait to see how the price of Bitcoin will behave is played in July, which has historically been a positive month.
