Bitcoin could decline by 50%

Bitcoin has struggled to cleanly break out of the $4,000 resistance level and remain above it for more than three months, staying in a tight range between $3,300 to $4,000. If the dominant cryptocurrency fails to test $4,000 again and slips, traders foresee the Bitcoin price declining to the $3,300 to $3,500 range.

“$4,400-$4,500 area is where I intend to hedge if we go up. If break down, keep an eye for absorption below $3,330 (HTF liquidity pool). The $2,500-$2,850 area is where I start buying spot if no absorption and we break-down to new lows,” a trader said.

But, if the Bitcoin price maintains its momentum at the current level and gradually climbs up to the mid-$4,000 region, analysts project a strong accumulation phase for the asset. The valuation of the cryptocurrency market has recovered at a fast pace in recent weeks. Since February 15, within a month, the cryptocurrency market has added $14 billion, fueled by the unforeseen rally of alternative cryptocurrencies and tokens.

However, despite the newly gained momentum of the cryptocurrency market, Bitcoin has shown weak signs of upside price movement after failing to test $4,000 since early March. According to Bloomberg Intelligence analyst Mike McGlone, technical indicators demonstrate an overall decline in long-term buying demand for Bitcoin, which could hinder the prospect of an accumulation phase in the upcoming months.

Bitcoin Could Plunge 50% with November-Like Dump amid Low Volatility: Analysts, CCN, Mar 13