Analysis challenges notion of ‘black swan event’ as Bitcoin price continues to plummet

Bitcoin (BTC) is facing new price targets after experiencing a drop of up to 15% since the weekend. Traders and analysts are now considering where the market might bottom out and how soon this could happen. On April 16, BTC/USD failed to hold a significant rebound after challenging $61,000 and is now trading around $62,000. Analyst Mark Cullen believes that Bitcoin is set for a fresh attack on the $60,000 resistance, suggesting that a final downward move could bring the price to around $59,000. This would be the lowest BTC price since late February and represents a drawdown of around 20% from recent all-time highs. Another popular analyst, Matthew Hyland, looked to the upcoming weekly close to determine the current pullback’s staying power. He noted that BTC/USD had lost the support of its 10-week simple moving average (SMA), which currently stands at $64,130. Full candles below the 10-week SMA were last seen in mid-2023. On-chain analytics platform CryptoQuant’s Binh Dang analyzed the adjusted cumulative value days destroyed (CVDD) metric and predicted that BTC/USD could remain at lower levels for a longer period before challenging its highs again. Binh explained that he expects BTC to test and accumulate at Phase 2, represented by the orange line in his chart. He does not anticipate the current geopolitical impetus to reach the panic levels seen during the COVID-19 cross-market crash in March 2020, and the worst-case scenario he envisions is a drop to just under $40,000. It is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.