According to some analysts, Bitcoin (BTC) is at risk of another sharp decline ahead of the critical Fed meeting this week.
XYO co-founder Markus Levin said it is “not out of the question” that the Bitcoin price could fall to $50,000 amid deepening market fear.
The Fed will announce whether it will cut interest rates on December 10th. While interest rate cuts typically provide liquidity to markets, supporting risk assets like cryptocurrencies, Levin believes the current market structure is insufficient to absorb this support. While Bitcoin is trading around $89,700 today, technical and sentiment indicators point to a deeper correction.
Levin stated, “The fear and greed index has shifted to extreme fear. This increases the likelihood of a deeper correction.” The expert noted that the first critical demand zone for Bitcoin is $82,000, followed by $78,000. However, he added that if buyers remain weak at these levels, a drop below $70,000 is possible. According to Levin, even a “short-term drop below $50,000” is possible due to the low liquidity environment.
In the options market, the picture is slightly different. Data shows that the largest short position in options expiring on December 26th is at $85,000, suggesting investors aren’t expecting significant short-term declines.
TYMIO founder Georgii Verbitskii, however, stated that Bitcoin’s technical outlook remains fragile, saying, “Structurally, the uptrend has been broken. It’s premature to rule out deeper pullbacks until Bitcoin establishes a strong hold above $100,000.” According to Verbitskii, a retest of $70,000 is possible as long as it remains below $100,000, but a sustained break above that level will significantly reduce downside risks.
Experts also argue that rising global inflation and funds flowing out of Bitcoin ETFs continue to put pressure on the price.
Bloomberg Intelligence strategist Mike McGlone also noted that volatility could increase in the final weeks of the year. McGlone predicts Bitcoin will trade below $84,000 by the end of 2025.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/prominent-founder-makes-unusual-bitcoin-prediction-ahead-of-fed-decision-a-drop-to-this-level-is-possible/
