Puckrin, referring to past cycles, stated that the current process might be a “transition from dispersal to reset” rather than a short-term correction, and that such transitions can take months, not weeks.
Zack Shapiro, policy director at the Bitcoin Policy Institute, argued that long-term fundamentals, particularly institutional adoption, remain strong. However, Shapiro stated that a price drop to around $58,000, the 200-week moving average, would not be surprising, representing a further decline of approximately 15% from current levels. He added that both panic selling and profit-taking by early investors are currently affecting the market, with sellers currently outnumbering buyers.
Technical strategist Katie Stockton also predicts that if the $70,000 level is broken significantly to the downside, the price could fall to around $57,800. Stockton noted that a break below the “cloud” indicator on the weekly chart signals a loss of momentum in the cyclical uptrend, suggesting a more volatile period in the coming months.
More drastic scenarios are also on the table. In a note sent to clients, US investment bank Stifel suggested, based on its analysis of bear market lows over the past 15 years, that Bitcoin could fall by 45% from current levels, dropping to as low as $38,000.
The sharp sell-off in the crypto market mirrors the weak performance in traditional markets. A surprise increase in weekly jobless claims in the US has unnerved investors, leading to declines in stock markets. The Dow Jones Industrial Average fell 1.1%, the S&P 500 dropped 1.3%, and the technology-heavy Nasdaq Composite declined 1.8%. The Russell 2000 index, which tracks small-cap companies, experienced a relatively more limited loss, falling 0.3%.
Selling pressure was also noticeable in the commodities market. Spot silver fell below $73, experiencing a loss exceeding 17% during the day, while New York silver futures also dropped below $72, registering a double-digit decline.
*This is not investment advice.