Analyst: If Bitcoin falls below $60,000, it could trigger “panic” selling

PANews, May 13: According to CoinDesk, FxPro trader Alex Kuptsikevich said that if Bitcoin closes below $60,000 in the next few days, panic selling may occur. Cryptocurrency traders are targeting a break above $65,000 before sentiment can be considered bullish. Alex Kuptsikevich said in a note that the price action is characterized by lower lows and lower highs, suggesting investors sell when prices rise. “The pressure may be related to a sell-off of miner assets and concerns about tighter regulation of cryptocurrencies,” Kuptsikevich said, referring to a drop in mining difficulty following the April halving. He believes: “If the price falls below $60,000, it may trigger panic selling. In our view, the positive scenario will prevail, that is, the price breaks through $65,000, fixates on the 50-day moving average, and continues to rise above the five-day moving average. The reversal zone at the beginning of the month.”

On the other hand, analysts at crypto investment firm Ryze Labs said in a weekly report that the behavior of short-term Bitcoin holders (or those who hold coins for less than 155 days) could significantly affect the future. market for several months. Ryze Labs said that in three instances, 94% of long-term and short-term Bitcoin holders were profitable: from mid-November to mid-April 2017, from mid-February to mid-April 2021, and more recently , from late February to early April 2024. However, following these peaks, short-term holders' losses mount rapidly, causing the cycle to reverse with short-term sellers selling to long-term holders. The team observed that historically, this shift resulted in significant price declines over the next four to six months.