Bitcoin Price Prediction: With BTC at $60,000 Support, Could a Flash Crash to $40,000 Happen?

cryptonews.com:

Bitcoin’s price is teetering on the edge of a precipice, with the critical $60,000 support level holding the line against a potential flash crash to $40,000.

Despite a weakening US dollar and anticipation of Fed rate cuts, Bitcoin continues its descent, fueled by declining demand and critical remarks from prominent figures like Peter Schiff.

This raises a crucial question for Bitcoin price prediction: Will the current bearish momentum lead to a significant market correction, or can Bitcoin rebound from this critical juncture?

Peter Schiff, a well-known Bitcoin skeptic, is raising concerns about Bitcoin’s recent performance.

Bitcoin’s recent 14% drop from its yearly peak to $60,800 fuels Schiff’s skepticism. While analysts still see an overall upward trend, reduced demand (23,000 Bitcoin outflow last month) raises concerns.

Schiff’s remarks, coupled with the decreased demand, contribute to the current market sentiment and suggest potential downside risks.

CryptoQuant analyst Julio Moreno attributes Bitcoin’s recent price correction to a notable decrease in demand. He points to a key metric:

This increased supply, coupled with insufficient buying activity, is driving prices downward. Factors like overall market sentiment and the recent launch of US Bitcoin ETFs further complicate the situation.

Moreno’s analysis underscores the crucial role of demand in shaping Bitcoin’s market dynamics. The question now is whether this trend will continue or if renewed demand will emerge to stabilize and potentially boost Bitcoin’s price.

Recent US economic indicators paint a complex picture:

While the anticipation of a September rate cut has weakened the US dollar, Bitcoin has failed to capitalize on this trend, continuing its downward trajectory.