Bitcoin (BTC), the market\u2019s leading cryptocurrency, has officially entered a new downtrend phase following a period of consolidation around the mid-$90,000 levels.\u00a0<\/p>\n
After reaching an all-time high of $109,000 in January, Bitcoin has now seen a significant drop of 7%, bringing its current price to approximately $87,400. This decline raises concerns about the sustainability of the broader bull market<\/a> as investor sentiment shifts towards fear.<\/p>\n Market expert Jesse Olson recently took to social media platform X (formerly Twitter) to question <\/a>whether Bitcoin is nearing a local top or possibly \u201cthe\u201d top for this market cycle.\u00a0<\/p>\n Olson referenced historical data suggesting that previous pivot points for Bitcoin often signal significant downturns. He highlighted two notable instances:<\/p>\n In April\/May 2021, the Bitcoin price experienced a pivot point about 20% below its local top, leading to a price drop of 56%. In November 2021, the pivot was around 15% from \u201cthe\u201d top, resulting in a staggering 77% decline.<\/p>\n Currently, the price sits approximately 15% below the recent peak<\/a>, and Olson notes a pending sell signal on BTC\u2019s 3-day chart, indicating potential further downside.<\/p>\n The expert also mentioned <\/a>that while Bitcoin has hit Target 2 of 4 in his analysis, several indicators suggest the price could drop below $80,000, with higher time frames beginning to show bearish signals.<\/p>\n Adding to the bearish sentiment, market expert Arthur Hayes expressed <\/a>concerns in a recent post on X, warning of a potential extension of Bitcoin\u2019s downturn.\u00a0<\/p>\n Hayes highlighted that many holders of BlackRock\u2019s Bitcoin exchange-traded fund (ETF), IBIT, are hedge funds that have gone long on the ETF while simultaneously shorting Chicago Mercantile Exchange<\/a> (CME) futures to earn a yield greater than short-term US treasuries.<\/p>\n Should Bitcoin\u2019s price continue to fall, Hayes suggests that these funds may unwind their positions, selling IBIT and buying back CME futures. This profit-taking strategy could lead to further declines in Bitcoin\u2019s price, potentially pushing it down toward the $70,000 mark.<\/p>\nCould A Drop Below $80,000 Be Imminent?<\/h2>\n
Arthur Hayes Warns Of Bitcoin Downturn<\/h2>\n