Analyst Predicts Bitcoin Could Drop to $56,000, Facing 55% Pullback
- Demand Contraction Confirmation: Julio Moreno, head of research at CryptoQuant, indicates that Bitcoin's demand growth has fallen below trend levels for the first time since 2024, confirming the bear market as Bitcoin's price dropped below its one-year moving average of $102,000, reflecting weakened market confidence.
- Increased Market Competition: Bitcoin faces competition from traditional macro assets such as gold, the Magnificent Seven tech stocks, and quantum computing equities, which have outperformed cryptocurrencies since October, further diminishing Bitcoin's market appeal.
- Reduced Institutional Purchases: Treasury companies that bought Bitcoin in 2024 have ceased acquisitions, leading to a significant drop in market demand, with most new corporate buyers making only one or two purchases, failing to provide sustained price support, indicating a trend of capital contraction.
- Pessimistic Future Outlook: Moreno projects Bitcoin's high to reach $102,000 in 2026, while Ethereum is expected to trade between $2,000 and $3,500, reflecting a cautious stance on future market conditions.
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Technical Analysis for BTC
Technical Sentiment Analysis for Bitcoin (BTC) As of , Bitcoin (BTC) is exhibiting a Sell technical sentiment. Our proprietary analysis, which aggregates 3 technical signals, shows that 0 indicators are flashing buy, while 3 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status Currently, the Relative Strength Index (RSI) for BTC stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the stock.
Support, Resistance & Moving Averages From a structural perspective, BTC is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
Bitcoin (BTC) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 36140.792 | 48070.396 | 60410.812 | 72340.416 | 84680.832 | 96610.436 | 108950.852 |
| Fibonacci | 48070.396 | 57341.544 | 63069.268 | 72340.416 | 81611.564 | 87339.288 | 96610.436 |
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