Crypto analyst CrediBULL Crypto has predicted that the Bitcoin price could crash to as low as $49,000 after it hits a local top of $70,000.
The Bitcoin price has surged significantly since the US Federal Reserve’s 50 basis points (bps) interest rate cut. However, there are projections that the flagship’s price rally may be shortlived and a price crash imminent. Crypto analyst CrediBULL Crypto has predicted that the BTC price could drop to as low as $49,000 soon enough.
The Bitcoin Price Might Crash Again
CrediBULL Crypto predicted in an X post that BTC could drop below $49,000 soon enough. Based on his analysis, he expects the flagship crypto to rise to a local top of $70,000 and then suffer another flush to “ideally under” $49,000 before the actual breakout begins.
the US Fed rate cut could spark a Bitcoin price rally to $70,000. However, a price crash could follow shortly after, just as CrediBULL crypto warned. Analyst Ali Martinez also recently hinted that the flagship crypto might soon suffer downward pressure.
He stated that nearly $2 billion in Bitcoin futures contracts have been opened over the last three days, potentially leading to a long squeeze. Meanwhile, CrediBULL alluded to the “Binance spot plunge production team,” which he claimed had arrived to make the Bitcoin price crash manifestation come true.
It is also worth mentioning that Martinez revealed that BTC was again testing the 200-day simple moving average (SMA). He noted that this was a critical level for confirming the bull run. Historically, Bitcoin’s failure to reclaim this level of support has led to “significant corrections.” The analyst added that a rejection could signal trouble for the flagship crypto.
Why A Price Crash Might Not Happen
Crypto analyst Bonk Guy has outlined why a Bitcoin price crash might not happen. He mentioned that the market is just weeks away from the fourth quarter of this year, which is seasonally the most bullish for risk assets.
Specifically, Bitcoin enjoys the most returns in Q4 of each year. Moreover, the flagship crypto has enjoyed positive monthly returns in October, November, and December of the last two halving years.
The analyst further mentioned that the US presidential election is 45 days away. Historically, Bitcoin enjoyed a price surge after past elections since the aftermath brings market certainty. There are projections that the BTC price could reach $90,000 if Donald Trump wins.
Despite the crypto community favoring a Trump presidency, history shows that the flagship crypto could still rise no matter who wins. Moreover, Anthony Scaramucci revealed that he is helping Kamala Harris develop crypto policies, which is a positive for BTC.
Meanwhile, BONK Guy mentioned that FTX customers are set to receive $16 billion in cash as their repayments following FTX’s collapse. This is bullish for the Bitcoin price since these users could allocate some money to the flagship crypto. These users receiving their repayments in cash also means that BTC won’t suffer any selling pressure from these customers like it did following the Mt. Gox repayments.
At the time of writing, Bitcoin price is trading at around $63,000, down in the last 24 hours. Trading volume has also dropped during this period, with $26.46 billion traded
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