Bitcoin’s ($BTC) price has been falling steadily, leaving many to wonder where it’s headed next. Currently, the cryptocurrency is down 2.20%, trading at around $55,900—its lowest level in a month.
With a market value of $1.10 trillion, this drop is sparking a lot of conversation among investors and experts.
Some believe the price could go even lower, while others see a potential rebound on the horizon.
Two scenarios for Bitcoin’s future
BitcoinSensus, a platform that offers insights on cryptocurrency trends, has identified two possible paths for Bitcoin’s price in the coming days.
The first is a bearish scenario, meaning the price could continue to drop. According to BitcoinSensus, the Y wave—a pattern often seen in price charts—may extend downward to $44,000.
This would align with a common target in chart analysis, which suggests that Bitcoin could face even more significant losses if this trend continues.
On the other hand, BitcoinSensus also offered a more optimistic view. In a bullish scenario, the Y wave could form into what’s called a triangle pattern. If this happens, the price could stabilise above $48,888 and may even start to rise.
This would signal a potential recovery for Bitcoin, although it’s too early to say which way the market will turn.
Both scenarios outlined by BitcoinSensus give investors something to watch closely.
Whether Bitcoin falls to $44,000 or stays above $48,888 could have a big impact on its price direction in the coming weeks.
Others warn of possible crash
Several well-known analysts are concerned that Bitcoin could face even bigger losses. Respected chart analyst, Ali Martinez, believes that Bitcoin is in danger of a major price drop.
He pointed to the TD Sequential indicator, a tool used to predict market trends, which has recently signalled a large sell-off on Bitcoin’s two-month chart.
According to Martinez, if Bitcoin can’t hold its support level at $51,000, the price could drop as low as $40,600.
Martinez isn’t the only one issuing warnings. BitMEX co-founder, Arthur Hayes, has also predicted that Bitcoin’s price might fall below $50,000 soon. He recently posted on X that Bitcoin is “heavy” and that he’s betting on a price drop below $50,000 this weekend.
Hayes’s bearish prediction comes at a time when the Crypto Fear & Greed Index—a tool used to measure market sentiment—has dropped to 22, indicating “extreme fear” among investors.
Adding to the concerns, Bitcoin recently saw $38.35 million in liquidations over just 24 hours.
This means that traders who bet on Bitcoin’s price rising have lost large amounts of money, further increasing worries about the cryptocurrency’s future.
Other cryptocurrencies face struggles
Bitcoin’s recent struggles aren’t happening in isolation. Other major cryptocurrencies have also seen significant price drops. Ethereum ($ETH), the second-largest cryptocurrency by market value, is down 2.23%.
Solana ($SOL) has fallen by 2.82%, and XRP by 2.19%. Together, these declines have led to a total of $94.26 million in liquidations, with $36.71 million coming from Bitcoin and $17.36 million from Ethereum.
These market-wide drops are creating unease among investors, many of whom fear that the downturn could continue.
Cryptocurrency analyst, Michaël van de Poppe, weighed in as well, suggesting that Bitcoin could fall to $54,000 before it starts to rebound. He noted that Bitcoin recently tested the $58,200 level but pulled back, leaving its future direction uncertain.
Van de Poppe pointed out that economic conditions could play a big role in Bitcoin’s recovery. He mentioned that job openings are at a three-year low, and recent employment data is the worst it’s been in over three years.
These factors have caused a rise in gold prices, as investors look for safer assets. Van de Poppe believes that if the US Federal Reserve cuts interest rates, this could boost the economy and, in turn, help Bitcoin recover.
However, he also warned that Bitcoin could drop below $50,000 before finding momentum again.
The cryptocurrency market is currently in a correction phase, meaning prices are adjusting after a period of growth.
