Bitcoin on the verge of another decline: Investors expect a bottom around $50,000

Bitcoin on the verge of another decline: Investors expect a bottom around $50,000

Bitcoin traders are still leaning towards caution in the first half of February. After a sharp drop last week, there is speculation that the price could fall as low as $50,000, which would represent a deeper retracement than before. Despite attempts to bounce off $70,000, the outlook remains uncertain as the market is still searching for a long-term bottom.

Macroeconomic factors, including the upcoming release of the US CPI index, are adding to the jitters. Investors are watching to see whether the Fed will leave rates unchanged or adopt a tighter policy, which will further affect volatility. At the same time, a weakening US dollar and Japanese elections are adding uncertainty to the cryptocurrency market.

Analysts warn that the current moves may be manipulative and serve to liquidate late shorts, with the price expected to test $60,000 again in the coming weeks, or even fall to $50,000. Traders are divided – some predict further declines, others believe that the current recovery is only temporary.

Overall, the situation is uncertain, and although Bitcoin currently remains around $70,000, the short-term outlook is pessimistic. The market is waiting for new macroeconomic data that may decide the next direction. Investors should be cautious, as another drop below $50,000 is still in the game.

*This is not an investment recommendation.

The Coingarage Team