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Bitcoin's 'Complacency Bounce' Could Precede 'Another 10%-20% Drop Soon,' Say Veteran Traders

Published 25/04/2024, 15:02
© Reuters Bitcoin's 'Complacency Bounce' Could Precede 'Another 10%-20% Drop Soon,' Say Veteran Traders
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Benzinga - Bitcoin (CRYPTO: BTC) is currently struggling to breach certain resistance levels to reach fresh highs, with analysts and traders expressing little optimism about its future performance.

What Happened: Renowned crypto analyst DonAlt forecasted a complacency bounce for Bitcoin, predicting it will continue until the cryptocurrency is back above $68,000. He detailed that the crypto king has chopped through the nearest support/resistance level, a common occurrence when the market is in “giga chop mode.”

A complacency bounce is a term used to describe a temporary recovery in prices after a significant drop.

Notable crypto trader Capo Of Crypto tweeted that the market looks weak and a 15%-25% shakeout seems likely:

In the second week of April, he stated that the market looks weak and a 15%-25% shakeout seems likely.

Also Read: Bitcoin Veteran Warns Crypto Bears: ‘You Have No Idea How Crazy This Bull Run Is About To Be’

Why It Matters: DonAlt’s predictions provide valuable insight for investors, suggesting potential short-term price movements for Bitcoin. However, as with all market predictions, investors must do their own research and consider multiple factors before making investment decisions.

IntoTheBlock data highlights an increase of 5.5% in large transaction volume to 49.7 billion, while daily active addresses widened by a significant 57% to 840,150.

Despite a 6% monthly drop in prices, 86% of Bitcoin holders are currently in profit. Transactions greater than 100,000 also increased to 8,792 as of April 24 from 6,749 transactions as of April 23.

Price Action: At the time of writing, Bitcoin was trading at $63,350, down 4.2% over the past 24 hours.

What's Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.

Read Next: Peter Schiff Warns Bitcoin Hodlers: ‘It’s A Long Way Down’ If King Crypto Can’t Hold $60K

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image created using artificial intelligence with Midjourney.

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

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