Ljubljana, Slovenia – May 12: Bitcoin Gold cryptocurrency trading chart on smartphone, close-up.
In a scathing assessment of Bitcoin, the largest digital asset by market capitalization, popular crypto analyst and trader Mags BTC investors emphasize that the crypto asset could fall to as low as $50,000 in the short term.
Will Bitcoin fall to $50,000 soon?
Mags has identified a crucial element that Bitcoin must manage to avert a drop below the $50,000 mark. This warning comes amid a wave of pessimism and increasing uncertainty in the cryptocurrency market, which has seen sharp fluctuations and an overall negative outlook in recent weeks.
The analyst bases his forecast on Bitcoin’s long-term trend around the low, which can lead to a rise or fall in value. According to Mags, the digital asset is testing the low for the fifth time since March.
He further noted that the price has been moving in a tight range for the past few months and a significant breakout could be imminent. However, the price is now in a crucial support zone that needs to be held back to ensure a further downward trendpossibly up to the $50,000 mark.
Although Mags pointed out that the crypto asset has already seen a fakeout below $60,000, a quick recovery, and a solid rise to the range high, if the price falls below the range low again, the development would be considered a real breakout and not a fakeout.
The post read:
We have already seen a fakeout below $60,000, followed by a quick recovery and a nice run up to the range high. If the price drops below the range low again, we will consider this an actual breakout and not a fakeout.
So far, the crypto expert has highlighted the lack of a significant support zone ahead of the $50,000 and $52,000 price levels, noting that the price is keeping the range “nicely” low and the overall outlook for Bitcoin is still optimistic.
Given the recent increased volatility and pessimistic market sentiment, Mags’ analysis underlines the importance of BTC remain above critical support levels and market conditions improve to maintain its value.
Dips are a good time to buy BTC
For the past three months, BTC has been in a consolidation phase, which caused fear and uncertainty among investors, most of whom sold to minimize their losses when the asset dropped in value.
Offer findings On this topic, Mags advised investors not to hesitate, as consolidation or a decline after the Bitcoin halving is very common, as every cycle shows. According to Mags, these market declines have favored the acquisition of BTC in the past.
Mags revealed that many Investors confuse this period with a distribution or cycle top. As a result, they sell early or sit out the best part of the rally, which he believes usually starts a few months after the halving. In addition, the analyst highlighted that these investors could miss out on a 250% gain in this cycle should BTC reach $200,000..
Featured image from iStock, chart from Tradingview.com
