Former Grayscale Research Director Warns Bitcoin Price Crash To $52000

In a post on X, former Grayscale research director Phil Bonello said there is a 20% chance of Bitcoin (BTC) falling to $52,000. He said rising inflation, ongoing geopolitical tensions, and instability in the Yen are all affecting Bitcoin and the broader crypto market. Bonello also highlighted that many altcoins have dropped by more than 50% and have retested support levels.

He said Bitcoin’s open interest has returned to levels observed when the price was $50,000, indicating a huge decline. Meanwhile, various market indicators, such as skew, funding, and basis, currently appear neutral. Despite low Bitcoin exchange-traded fund (ETF) flows, flows, he expressed confidence in BTC’s ability to withstand such fluctuations. Moreover, the ex-Grayscale Director anticipates a significant rise in ETF activity as the year progresses. 

Bitcoin Dips to $62,000 Level

Bitcoin price lost momentum and dropped below $63,000 on April 27. At the time of writing, BTC is trading at $62,837, marking a decrease of 2.30% in the last 24 hours. Its 24-hour trading volume dropped by 22% to $23.13 billion, and its market cap decreased by 2.1% to $1.24 trillion.

Moreover, Coinglass reported that long positions accelerated the price decline with $35.08 million in liquidations. This represents a staggering 81.8% of the total $42.92 million in liquidations recorded over the past 24 hours. 

Analysts Offer Bearish Outlook on BTC

Michaël van de Poppe, founder and CEO of trading firm MNTrading, offered a bearish outlook on BTC, which is in line with Bonello’s analysis. He hinted at further corrections in the BTC price while anticipating better performance from altcoins.

#Bitcoin is still stuck in a range.

I don't think we'll see much happening from here for the coming 3-6 months.

Slow sideways, perhaps a grind.

Expecting way more from #Altcoins. pic.twitter.com/akiD1uhTCU

— Michaël van de Poppe (@CryptoMichNL) April 26, 2024

Another popular trader and analyst, Rekt Capital, updated his monitoring of BTC price performance after the halving event. He set a two-week deadline for any major dips to occur. 

Rekt Capital stated:

“In this cycle, Bitcoin has entered the Post-Halving ‘Danger Zone’ (purple) and is very near the Range Low. If additional downside volatility below the Range Low is to occur, it would be during these upcoming two weeks.”

He shared a chart that compared behavior during the 2024 halving to historical norms.