KEY POINTS
- Bitcoin has been down by over 3% in the past week, as per CoinGecko
- Andrew Kang said it is possible for BTC to plummet to $40,000 before a reversal becomes possible
- Flow Horse called out the 'overconfidence' among holders 'unwilling' to accept that a lower dip can happen
Bitcoin, the world's largest digital asset by market value that rode to the top of glory in March, has plunged to $58,000, and many smaller holders are concerned about the path the cryptocurrency could take in the coming weeks.
Data from CoinGecko shows that at one point on Wednesday night, $BTC slumped to $58,100 before it made the climb to $58,700 early Thursday. Still, the digital coin has been down by 3.2% in the past week and declined by 3.8% in the last 24 hours.
The price plunge triggered concerns among crypto users on X (formerly Twitter) about the sentiment around the community, with some pointing out that "retail has been getting shaken out lately."
A growing number of investors, analysts, and crypto industry observers are floating the notion that accepting Bitcoin's downtrend may make it easier for holders to navigate through the market.
Prominent crypto investor Andrew Kang has updated his initial estimates of Bitcoin possibly reaching the $50,000 low, saying his views may have been "too conservative." He now thinks "a more extreme reset to $40ks" is possible at this point.
Most market participants are not appreciating the significance of a potential loss of a 4-month range on Bitcoin
— Andrew Kang (@Rewkang) July 3, 2024
The closest parallel we can draw is to that of the range of May 2021 where we also came off a parabolic rally of BTC and alts
$50B+ of crypto leverage here is… https://t.co/R3qAcCajAC pic.twitter.com/B4bpeoZwxo
Kang acknowledged that a price reset below $50,000 "would be quite damaging to the market" and may even require the community to go through "a few months" of the digital currency being on recovery period "before a reversal of an upward trend" becomes possible.
Kang's projections didn't sit well with many Bitcoiners on the social media platform. On the other hand, he isn't alone in considering the possibility of $BTC plummeting further.
Pseudonymous Flow Horse, another well-followed investor, pointed out how many crypto users may be stuck in an "overconfident" state of mind wherein they are "unwilling to consider Bitcoin even reaching the 40s again."
The market is still lulled into a sense of overconfidence about how low we could go if this range breaks down.
— HORSE (@TheFlowHorse) July 3, 2024
Almost everyone I see on my timeline and in chats, who only momentarily get bearish, thinks in terms of a few points when it comes to lows.
They are completely…
For @Trader_XO, who boasts a following that includes former crypto insider Jake Donoghue, Mario Nawfal, and leading blockchain intelligence firm Arkham Intelligence, most holders of Bitcoin have become "unforgiving" about the downside of holding the world's first decentralized cryptocurrency. He noted that "long-time BTC observers know that Bitcoin frequently surpasses expectations, both to the upside and equally to the downside."
Predictions are often misinterpreted on here as biased facts etc... but theyre not actionable.
— XO (@Trader_XO) July 3, 2024
Perhaps easier for most to adopt a view on price developments per major level.
Long-time BTC observers know that Bitcoin frequently surpasses expectations, both to the upside and…
Apparent $BTC hodlers – crypto holders who keep their digital assets regardless of market movement or sentiment – commented that the coin crashing to $40,000 is still bullish activity. "People forget how much it rose for a year and a half," one hodler pointed out.
However, investor Max Price warned that "many" $BTC bulls will "make fun" of bearish posts following the coin's plunge due to previous cycles where market prices revert to the upside. "This is not the same situation, I'm afraid," Price noted.
As of writing, Bitcoin price was holding below $59,000.
