Could Bitcoin Drop to $50K before Turning Around?

As Bitcoin (BTC) continues to fall and subvert expectations, some analysts are worried that it could hit as low as $50K before turning around and climbing back to $70K.

Bitcoin has fallen again and again and failed to break through high resistance levels in recent weeks. This may be creating a pricing pattern that sets the coin up for a steep decline that may not end until the coin bottoms out at an extremely low level, perhaps as low as $50K, according to some analysts.

Over the last 24 hours, Bitcoin has dropped by 0.5% down to $61,100 (BTC/USD). It looks for the moment that Bitcoin’s decline is slowing down, since it recently dropped nearly 5% in a single day. However, this could simply be a slight ease up in a longer declining pattern of bearish behavior. The ebb and flow of Bitcoin’s pattern is showing an overall downward trend that may not stop for a while.

The founder of 10X Research, Markus Thielen, says that Bitcoin is testing its support level and could be trending in a double-top pattern. This happens when the price dips between two like peaks and keeps its support level above the neckline, or common line.

The current trading range for Bitcoin is somewhere between $60,000 and $70,000, but it could break beneath that and establish a lower trading range. We could be seeing the wind up to a much steeper decline.

What This Means for Bitcoin

That is bad news for investors who bought in on Bitcoin when it dipped to its lowest point in a month at $63,500 recently. That point could be far from its lowest level for a while.

Now, Bitcoin may defy even these expectations and make its way back up, finding a higher support level and pushing toward a record high. What would help is if Bitcoin investors hold on to their coins like the Dogecoin (DOGE) investors have been doing and wait out the low period.

Bitcoin could also use some help from inflation, and if that national inflation level were to decrease, Bitcoin would likely get a boost. Economic factors will play a role in determining where Bitcoin goes next, so watch upcoming economic reports to see what might happen there.

Bitcoin could gain support from the wider market through ETFs. If those do well once they hit the market, we could see Bitcoin break through its current resistance level and trade much higher for a while.