In the past week, Bitcoin showed a promising rally, which took the coin out of the red zone, but this is still not enough as it needs to reach $62,000 in valuation and hold its price there. Analysts claimed that if Bitcoin fails to hold its value at $62,000, there might be another inevitable "Crypto Black Monday" coming.
However, this is not only a regular crash prediction as they claim that Bitcoin may fall to a $49,000 valuation, which is possibly its lowest since its rally.
Bitcoin Needs to Reach $62,000 and Hold its Value
According to a report by CoinTelegraph, analysts from Kraken claimed that Bitcoin is now at a crucial point, one where it either needs to step up to a $62,000 valuation or risk experiencing a crash. Kraken said that BTC needs to "clear resistance" by achieving $62,000 and hold its value there, particularly as it nears its 200-day exponential moving average of $59,500.
Failing to do so will be critical for Bitcoin, with Kraken claiming that it will crash to a massively low price. Furthermore, analysts have claimed that failing to hold the value at $62,000 "could signal a deeper correction" for Bitcoin.
'Crypto Black Monday' is Coming, BTC to Crash at $49,000
Bitcoin already saw a "Crypto Black Monday" after it fell to its low point of $50,000 to $49,842.
It was revealed by analysts that this is the same position Bitcoin is in, and they believe that reaching $62,000 and holding that price can be a turning point for the coin. If it succeeds in doing so, it could eventually reach a new all-time high, said Profit Blue.
Bitcoin's Performance So Far This 2024
After a bullish climate for the entire crypto industry over the past two years, there was a ray of hope that appeared towards the end of 2023 and during the beginning of 2024. The first climb of Bitcoin took place in March of this year, and this led to BTC reaching its new all-time high record of $72,717. This is its largest valuation since 2021's $69,000.
For many months, Bitcoin held its value at around $68,000, but it saw a drop to $65,000 after several weeks down. Investors widely regarded this to be a market decline.
Unfortunately, its streak of decline did not end there as it saw a crash from $62,000 during the start of July to $53,000 a few days after. This has been attributed to Mt. Gox's repayments.
August then saw a bad start as well with the stock market crash prompting a bullish climate and investors withdrawing their holdings, leading to another crypto crash. There is still a dwindling performance of crypto in the market, and now analysts are saying that Bitcoin needs to step it up to $62,000 to avoid the risk of a crash that could lead to another Black Monday fiasco.
