Bitcoin breaks $75,000, but is it a 'trap'?...Risk of $60,000 collapse detected

▲ Bitcoin (BTC)

Despite its recent temporary rebound, Bitcoin (BTC) has still not escaped the swamp of a downturn. Consequently, some have put forth a pessimistic outlook, suggesting it could fall below $60,000.

According to crypto media outlet NewsBTC on April 22 (local time), virtual asset analyst JDK Analysis pointed out that Bitcoin's recent attempt to break $75,000 was merely its fourth fake breakout. The analyst diagnosed the current upward trend not as a genuine recovery but as a re-accumulation phase where volume temporarily gathers within a bear market. It was analyzed that additional downside risks continue to build, especially in the absence of genuine bottom signals.

The movements of large investors are also a factor increasing market uncertainty. Due to their massive capital, whale investors find it difficult to buy immediately at the bottom like typical retail investors. They build positions through liquidity engineering in areas where sufficient selling volume is secured. The analyst explained that the phenomenon of prices repeatedly fluctuating within a certain range could actually be a process where whales induce liquidity to accumulate volume.

The current market situation is far from a bottom formation process where selling pressure is exhausted. The analyst believes that for a true bottom to form, attempts to lower the price must fail multiple times, trading volume must decrease, and selling pressure must disappear. However, Bitcoin currently shows a strong rejection reaction with decreasing trading volume every time it tests the upper resistance line. This is a typical bearish signal indicating that supply is overwhelming demand in the market.

According to technical analysis, if Bitcoin fails to hold the $75,000 level, there is a high possibility of a sharp drop to the $59,000 level. If even the $59,000 support level breaks, the final bottom is predicted to be confirmed below $56,000. This is an unavoidable cold warning for investors who were relieved by the recent rebound.

The virtual asset market is expected to continue its mixed trend as it searches for direction for the time being. The eyes of investors worldwide are focused on whether Bitcoin will defend key support levels and lay the groundwork for a rebound, or face the worst-case scenario of a $60,000 collapse as predicted by the analyst. In a situation where selling forces hold market dominance, risk management is needed more than hasty optimism.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*