Bitcoin (BTC-USD) remained steady near the $69,000 mark on Tuesday, as industry analysts began to speculate that the cryptocurrency might be nearing a bottom following a significant sell-off. Ed Engel, an analyst at Compass Point, indicated in a note late Monday that the ongoing fluctuations in the crypto markets could signify that they are in the early phases of recovery after a recent wave of capitulation.
Engel highlighted that investors recorded approximately $10 billion in realized losses last week, marking it as the second-highest total since June 2022. He pointed out that such substantial capitulation events often occur toward the final stages of a sell-off. However, he also warned that crypto market downturns often do not lead to quick recoveries. Engel suggested that Bitcoin could retest the $60,000 level and might even drop as low as $55,000.
The cryptocurrency has experienced a dramatic decline, down roughly 45% from its all-time high above $126,000 reached in October. This decline followed a series of forced liquidations and aggressive selling by major holders, which had been termed a “crypto winter.” The selling pressure intensified last week as Bitcoin dipped just below $61,000, experiencing its steepest daily drop since November 2022. Following this downturn, prices rebounded swiftly on Friday and have since fluctuated around the $70,000 threshold.
Ether (ETH) also faced challenges on Tuesday, dipping close to $2,000, which has contributed to its year-to-date losses of about 30%. In a separate analysis, Bernstein analysts conveyed their outlook on Bitcoin, stating that the “bear case is the weakest in its history.” Gautam Chhugani and his team argued that the current price fluctuations represent a crisis of confidence rather than a significant underlying issue. They are optimistic about Bitcoin, predicting it could reach an all-time high again, with a target set at $150,000 by year-end.
As Bitcoin traded around $69,000, analysts monitored market movements closely, debating the potential for further dips and the overall recovery trajectory in the volatile cryptocurrency landscape.
