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Crypto analysts warn that the current Bitcoin sell-off could lead to lower lows, potentially threatening a dip below the $45,000 mark.
The Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) price fell by more than 12.8% in the past 24 hours to trade at a five-month low of $52,369 as of 10:13 am UTC, according to Cointelegraph data. Bitcoin last trading at this level at the end of February 2024.
Yet, Bitcoin’s downtrend could potentially extend to the $42,000 mark, according to Alex Kuptsikevich, senior market analyst at FXPro.
The analyst told Cointelegraph:
<blockquote data-ct-non-breakable="true">
 “At its lowest point, Bitcoin dipped below its 50-week moving average. Without strong buyer support right now, it goes even lower, and it would trigger an even more active sell-off as it did in late 2021 and early 2022. If it doesn’t hold either, it’s worth preparing for a failure toward $42K.”
</blockquote>
Round psychological numbers like $42,000 often represent key focal points for crypto investors and the price action at these levels could determine Bitcoin’s momentum in the short term.
Related: <a href="https://cointelegraph.com/news/futu-securities-bitcoin-ether-trading-hong-kong">Hong Kong’s largest online broker launches Bitcoin and Ether trading for 22 million users</a>
<h2 data-ct-non-breakable="true" id="can-bitcoin-remain-above-45-000">Can Bitcoin remain above $45,000?</h2>
Despite the recent downside pressure, Bitcoin could still stage a recovery and avoid posting lower lows.
However, Bitcoin needs to decisively reclaim the $51,000 mark to avoid more downside, according to pseudonymous crypto analyst the Moon, who <a href="https://x.com/TheMoonCarl/status/1820354284048753108/photo/1" target="_blank" rel="noopener nofollow">wrote</a> in an Aug. 5 X post:
<blockquote data-ct-non-breakable="true">
 “BTC must get back above the support, otherwise we might dump to $45,000.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/88d77728-4e43-4823-a8fb-f084c38c7b2f.jpeg" alt="Analysts warn of further Bitcoin downside — Could BTC revisit $42K?" title="">
 <figcaption style="text-align: center;">
 BTC/USDT, 1-day chart, support line. Source: The Moon
 </figcaption>
</figure>
Bitcoin’s over 20% decline remains in line with previous bull cycle retracements and was initially triggered by a failed attempt to conquer the $70,000 mark, according to Kuptsikevich. The senior market analyst added:
<blockquote data-ct-non-breakable="true">
 “Active pressure on the first cryptocurrency started after a failed attempt to go above $70K and overcome the resistance of the descending channel seven days ago.”
</blockquote>
Related: <a href="https://cointelegraph.com/news/ethena-labs-usde-bybit-launch">Ethena Labs’ USDe launches as margin collateral on Bybit with 20% APR</a>
<h3 data-ct-non-breakable="true" id="bitcoin-holds-significant-support-at-the-50-000-mark">Bitcoin holds significant support at the $50,000 mark</h3>
Despite the gloomy market outlook, Bitcoin’s price has a significant support level at the $50,000 psychological mark.
Over $400 million worth of cumulative leveraged short positions would get liquidated if Bitcoin potentially fell below the $50,000 mark, <a href="https://www.coinglass.com/pro/futures/LiquidationMap" target="_blank" rel="noopener nofollow">according</a> to Coinglass data.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/5225b71d-a7c7-4f1b-885d-6ce7e607532a.png" alt="Analysts warn of further Bitcoin downside — Could BTC revisit $42K?" title="">
 <figcaption style="text-align: center;">
 Bitcoin exchange liquidation map. Source: Coinglass
 </figcaption>
</figure>
If the Bitcoin price falls below $49,400, short Bitcoin liquidations would reach over $520 million across all exchanges.
Magazine: <a href="https://cointelegraph.com/magazine/bitfinex-hacker-bitcoin-2024-senator-lummis-bitcoin-strategic-reserve-bill-cointelegraph-magazine/">Criminal at Bitcoin 2024, BTC Strategic Reserve Bill, and more: Hodler’s Digest, July 28 – Aug. 3</a>

Analysts warn of further Bitcoin downside — Could BTC revisit $42K?

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Cointelegraph

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