In a scathing assessment of Bitcoin, the largest digital asset by market capitalization, renowned crypto analyst and trader Mags has warned BTC investors are highlighting that the crypto asset could drop as low as $50,000 in the short term.
Will Bitcoin fall to $50,000 soon?
Mags has identified a crucial element that Bitcoin must successfully avoid a drop below the $50,000 price level. The warning comes amid a wave of pessimism and increased uncertainty in the cryptocurrency market, which has seen sharp swings and overall negative sentiment in recent weeks.
The analyst bases his forecast on Bitcoin’s long-term trend around the bottom of the range, which can lead to a rise or fall in value. According to Mags, the digital asset is testing the bottom of the range for the fifth time since March.
He further noted that the price has been moving in a narrow range over the past few months and a significant breakout could be on the horizon. However, the price is now in a crucial support zone that must be contained to avoid a new downward trendperhaps up to the $50,000 mark.
Although Mags pointed out that the crypto asset has already experienced a false break below $60,000, a quick recovery, and a solid climb towards the range top, if the price falls below the range bottom again, the development will be considered a true breakout rather than a false breakout.
The message read:
We have already seen a counterfeit below $60,000, followed by a quick recovery and a nice run up to the top of the range. If the price falls back below the low of the range, we will consider it a true breakout rather than a false exit.
So far, the crypto expert highlighted the lack of a significant support zone ahead of the $50,000 and $52,000 prices, noting that the price is holding the low range “well” and that the overall outlook for Bitcoin are still optimistic.
In light of the recent increased volatility and pessimistic sentiment in the market, Mags’ analysis highlights the importance of Bitcoin stay above critical support levels and improve market conditions to maintain its value.
Dips are a good time to buy BTC
Over the past three months, BTC has entered a consolidation phase, sparking fear and uncertainty among investors, with most of them selling to minimize losses every time the asset drops.
Offer knowledge On this subject, Mags advised investors not to hesitate, as a consolidation or decline after the Bitcoin halving is very common, as demonstrated in each cycle. According to Mags, these market declines have historically favored the acquisition of BTC.
The magazines revealed that many investors confuse this period with a distribution or a cycle peak. As a result, they sell early or stay away from the best part of the rally, which he says usually starts a few months after the Halving. Furthermore, the analyst pointed out that these investors could miss out on a 250% gain in this cycle if BTC hits $200,000.
Featured image from iStock, chart from Tradingview.com
