July 19, 2024
Bitcoin price

Crypto analyst Crypto Rover has provided insights into what could happen if the Bitcoin price drops below $58,000. The flagship crypto has continued to suffer price declines lately and risks dropping to that price level if it manages to break the crucial $60,000 support level

What A Drop Below $58,000 Would Mean For The Bitcoin Price

Rover mentioned in a video on his YouTube channel that Bitcoin dropping below $58,000 would mean a breakdown for the flagship crypto token. He, however, quickly added that there’s still a lot of liquidity in the market, which he believes Bitcoin can take in and help drive its price back above $60,000 if the drop below $58,000 happens. 

He sounded optimistic about Bitcoin’s quick recovery if it dropped below $58,000. He revealed that he would not close his positions but rather open millions of dollars long positions if the flagship crypto dropped between $57,000 and $60,000.

Meanwhile, Crypto Rover revealed that Bitcoin is still in the middle of a “gigantic and enormous consolidation phase” and that Bitcoin will have a “massive breakout” when this consolidation period ends. For now, he highlighted that Bitcoin’s top side is still trending downwards while Bitcoin’s low side is trending upwards. 

Therefore, Crypto Rover claimed this is causing a “compression” in Bitcoin’s price. However, once this compression ends, Bitcoin will come out with a “banger,” the analyst added. Crypto Rover then alluded to the funding rates, which are currently negative. He noted that historically speaking, negative or low funding rates are always a Bitcoin buying opportunity

The Big Gains Are Yet To Come For BTC

Crypto Rover also noted that the majority of Bitcoin’s gains always come after the Bitcoin halving and not before. As such, despite the crypto token rising to a new all-time high (ATH) before the halving, the analyst asserted that “what we have seen so far is nothing for what we are about to be getting.”

He suggested that the halving event would be the catalyst for Bitcoin’s rise to $100,000, mainly because it would create more scarcity. This would undoubtedly help increase Bitcoin’s value, especially if its demand continues to skyrocket. However, such a price surge might not come immediately, considering that Bitcoin’s price tends to increase 6 to 12 months after the halving. 

Hannah Phung, a lead analyst at on-chain analytics platform SpotOnChain, also recently made that observation, although she admitted that things could be different this time around, as this market cycle looks to be more different and mature than past ones. 

At the time of writing, Bitcoin is trading at around $60.900, down almost 5% in the last 24 hours, according to data from CoinMarketCap.

Bitcoin price chart from Tradingview.com

BTC price recovers above $62,000 | Source: BTCUSD on Tradingview.com

Featured image from PYMNTS, chart from Tradingview.com

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