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Breaking News: Bitcoin Price Tumbles Toward $98,000: What’s Driving The Drop And What Lies Ahead
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Breaking News: Bitcoin Price Tumbles Toward $98,000: What’s Driving The Drop And What Lies Ahead

Why Bitcoin Could Have More Upside Potential (After the Crash)

Reynaldo Marquez
Reynaldo Marquez
Last Updated: June 11, 2024 2:35 pm
2 mins read
Bitcoin BTC BTCUSD Crash

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[vc_row][vc_column][vc_column_text]Bitcoin is holding well above the critical support at $47,000. Trading at $50.067 with 1.6% in the 1-hour chart and sideways movement in the 24-hour chart, BTC seems to be on a path to recovery on the lower timeframes. As many in the crypto space have said, this bull-run will be defined by its quick bounce backs and consolidations periods.

Bitcoin BTC BTCUSD
BTC moving sideways in the daily chart. Source: BTCUSD Tradingview

Trader Josh Rager compared BTC’s past price action with the current price performance. For Rager is a normal part of a bull-run for BTC to trend below its 100 days Exponential Moving Average (EMA). During 2017, the cryptocurrency saw at least 3 drops below this metric.

The trader believes investors should be “concerned” if the price breaks below its 200D EMA. In contrast, BTC never trends below this metric while on bullish price action.

Bitcoin BTC BTCUSD
Source: Josh Rager

During the weekend, the trader expects a bounce if BTC drops to the mid-$40,000. Currently, the 10W EMA is converging with the weekly support level, as Rager explained. This could serve as a good entry point for a long position in both BTC and altcoins, as the trader said:

The bottom could be in, but if Bitcoin bounces and then goes down to lower $40ks. Would love to buy in that area both $BTC and alts. As long as price holds there we could see some major rallies over the next few months as BTC slowly uptrends.

In the meantime, some side movement could be Bitcoin’s new normal for the short term. Lex Moskovski, CIO at Moskovski Capital, believes the recent crash “cooled off” BTC’s major overheating indicators.

As seen below, Moskovski compares 2017 bull run metrics with the current market and determined that Bitcoin is around 44% from potentially reaching a peak on its upside trend. On the contrary, there could be even more upside momentum after this week’s crash. Moskovski said:

Bitcoin has cooled off a bit and according to the major overheating indicators has even more upside now.

Bitcoin BTC BTCUSD
Source: Lex Moskovski

What Could Break Bitcoin’s Market Structure?

Economist and trader Alex Krüger provided further arguments for a long-term BTC bullish case. As Krüger said, this cryptocurrency has seen massive adoption with macro-economic conditions that benefit it. Since 2020, the thesis of Bitcoin as a store of value has gained a lot of strength among institutional investors.

Krüger laid out two possible scenarios. In one, “major catalysts” re-heat the market, and BTC’s price pushes into a new discovery period. The economist said:

The first half of this dump was expected, not so the second, which was news-driven. Shit happens. But nothing major has changed aside of a healthy cleansing. When expecting a range good to avoid getting bullish on breakouts, or risk getting head chopped off.

In the second scenario, the U.S. Government and its Secretary of Treasury Janet Yellen launch new regulations for crypto and digital assets. Krüger expects any “draconian” rules to negatively impact the market.[/vc_column_text][/vc_column][/vc_row]

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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
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