Bitcoin Price Prediction: BTC Weakness Shows Road to $50,000 Ahead

Key Insights:

• Analysts identified $57,900 as the next key support level for Bitcoin price, failing which could lead to $50,000.
• CryptoQuant suggests Bitcoin is entering the early stages of a market reset rather than confirming a final bottom.
• Grayscale expects Bitcoin could be near a cycle low if the CLARITY Act advances.

Bitcoin price fell below $60,000 over the weekend and remained under pressure during Monday’s session. Technical analysts warned that the breakdown could open the door to a deeper correction toward $50,000 if key support levels fail. At the same time, Grayscale said Bitcoin’s outlook could worsen if the CLARITY Act fails to advance in Congress.

Bitcoin Price Loses Key Long-Term Support

Popular crypto analyst Nic wrote that the Bitcoin price has dropped below its 200-week simple moving average (SMA) for the first time in the current market cycle. This is a major technical development with BTC losing its long-term support.

According to the analyst, the 200-week SMA has historically served as a major support level during Bitcoin bear markets. With that level now breached, he believes traders should monitor lower support zones.

Nic Crypto identified the 61.8% Fibonacci retracement level near $57,900 as the next key area of support. If Bitcoin fails to hold that level, he said the cryptocurrency’s on-chain realized price around $53,200 could become the next major support to watch.

Another analyst, Crypto Patel, said Bitcoin has broken below its nine-year high time frame (HTF) structural trendline. This shows a potential bearish shift in the long-term BTC market structure.

According to the analyst, Bitcoin’s inability to reclaim this key support level increases the likelihood of a deeper correction in the months ahead. He noted that as long as BTC remains below the former trendline support, it is a bearish indicator.

Based on his analysis, Crypto Patel expects Bitcoin to decline below the $50,000 level before the market enters its next macro expansion phase.

CryptoQuant: The First Bitcoin Price Bottom Signals Appear

Based on the on-chain indicators, blockchain analytics firm CryptoQuant noted that Bitcoin may be entering an early stage of bottoming out. But analysts Moreno stated that there’s still possibility of further downside.

According to the analysis, the Bitcoin UTXO Block Profit/Loss Count Ratio has fallen into a range that has historically coincided with market bottoming phases. The indicator measures how broadly profits are distributed across the Bitcoin network. A high reading suggests most holders remain in profit. It increases the chance of further distribution.

The latest decline in the ratio suggests the market is undergoing a broader reset. But analyst Moreno said that the final bottom may not be in yet.

For a stronger bottoming signal, the metric’s 365-day moving average would need to decline more sharply. This will indicate that the market’s long-term profit structure has completely reset. The analyst wrote:

The main takeaway is that BTC is finally showing evidence of a meaningful internal clean-up. But if history is a guide, the market may still need to absorb more stress before the bearish phase can fully exhaust itself.

BTC Price Can Fall If CLARITY Act Stalls

Asset manager Grayscale Investments noted that a bullish scenario would involve the CLARITY Act passing the Senate, Strategy strengthening its balance sheet, and the Federal Reserve refraining from further interest rate hikes. Under those conditions, the asset manager believes Bitcoin may be close to establishing its cycle low.

However, Grayscale outlined a downside scenario in which Bitcoin could face additional losses. They noted that failure to pass the CLARITY Act, and the Fed rate hike could lead to further downside for BTC.

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