Welcome to Extreme Investor Network, where we provide you with expert insights and analysis on the latest trends in investing. Today, we are diving into the world of cryptocurrency, specifically focusing on the recent sell-off of bitcoin.
According to analysts who closely monitor price charts, the recent downturn in bitcoin may not be over just yet. The flagship cryptocurrency experienced its first negative month in eight, with April proving to be its worst month since November 2022. The sell-off intensified as bitcoin dropped below the key $60,000 support level for the first time since February, causing concern among investors.
Ari Wald, an analyst at Oppenheimer, highlighted that the $60,000 level was a crucial support level for bitcoin, representing a convergence of the March low and 100-day moving average. Additionally, David Keller, chief market strategist at StockCharts.com, pointed out that the breach of this support level could signal a near-term top for bitcoin, potentially leading to further downside.
Geoff Kendrick, head of digital asset research at Standard Chartered, shared similar sentiments, suggesting that bitcoin could retrace to the $50,000 to $52,000 range. This view was supported by Rob Ginsberg of Wolfe Research, who stated that $60,000 bitcoin appears vulnerable and a drop to $50,000 could be in play.
While the short-term outlook for bitcoin may seem uncertain, Keller remains optimistic about the long-term potential of the cryptocurrency. He noted that historical data has shown that bitcoin often experiences post-halving sell-offs, followed by bullish upswings in the months to come. As such, he expects short-term weakness to be followed by a strong move towards new all-time highs later in 2024.
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