Bitcoin correction deepens, experts' coin outlooks diverge

As market instability deepens, Bitcoin is on the verge of breaking below the price levels it has maintained over the past few months. Currently trading in the $66,000 range and showing weakness, experts’ outlooks on Bitcoin are divided. Concerns are raised that if the technical support level breaks, the price could fall below $70,000 and potentially decline further.

Cryptocurrency Fails to Rebound Amid Traditional Market Weakness

Recently, the U.S. financial markets experienced broad corrections, with the Nasdaq dropping over 2% and gold prices falling significantly near $5,400 per ounce. However, traditional markets recovered substantially in the afternoon. In contrast, the cryptocurrency market, including Bitcoin, failed to participate in this rebound, highlighting a divergence from the spot market.

Over the past 24 hours, Bitcoin has fallen 2.02%, Ethereum 1.74%, Solana 2.79%, XRP 1.75%, and Dogecoin 2.81%. Cryptocurrency-related publicly traded companies also faced similar weakness, with major firms like Coinbase and Stratis losing between 5% and 10%.

Concerns Over Major Correction if Support Breaks

Matt Mena, a crypto strategist at 21Shares, evaluated the current $66,000 level as an “attractive entry point,” but emphasized the importance of maintaining technical support. If this support level fails, the next resistance levels are expected at $80,000 and $75,000.

John Glover, Chief Investment Officer at Ledn, presented a more bearish outlook. He stated that the recent sell-off is part of a broad correction starting from October’s record highs, and Bitcoin could drop as much as 43% from its peak, down to $71,000. Glover explained that the strength of the US dollar and rising Treasury yields are driving current market uncertainty, leading investors to continue viewing Bitcoin as a risky asset, selling it along with stocks.

Downward Scenario if Support Levels Fail

Russell Thompson, CIO of Hilbert Group, offered an even more pessimistic outlook. “All technical support levels have been broken to the downside, and there’s no clear support for Bitcoin,” he said, suggesting a potential drop to $70,000. While the clarity mark on the chart indicates a bullish signal, he noted that the overall risk-averse sentiment remains dominant.

Future Outlook: Optimism and Concerns

Not all experts are bearish. Mena predicts Bitcoin could break out of its current correction and reach $100,000 by the end of Q1. If macroeconomic conditions improve, he suggests a new all-time high of $128,000 could be achievable. Glover also remains optimistic about the mid- to long-term, stating, “The current situation is somewhat temporary, and we expect Bitcoin to rebound within the next few quarters.”

Ultimately, the short-term outlook hinges on whether the technical support levels hold. If support remains intact at current levels, a rebound could occur. However, if support fails, further correction below $70,000 may be inevitable.