Is Bitcoin Heading to New Lows?

Here’s why the worst for BTC may not be over yet.

The American president, Donald Trump, shocked the world yesterday (April 7) when issuing a stark warning that “a whole civilization” will die, and many feared that the conflict in Iran could reach catastrophic dimensions.

However, the warring sides agreed to lay down their weapons for a period of two weeks, giving investors huge relief and, of course, boosting financial and crypto markets. Bitcoin temporarily climbed above $72,500, causing some analysts to predict further gains ahead. However, others remain cautious, alerting that the conditions remain bearish and a new crash could be on the horizon.

Not Out of the Woods Yet

X user Ted has been quite pessimistic about BTC lately, noting that some users have challenged his predictions after the price pump following the US/Iran ceasefire. Nonetheless, he sticks to his forecast that the bear market is not over and that the asset and the entire crypto sector have yet to dump to new bottoms.

“The ceasefire deal will pump the markets, but it will dump in the next weeks to new lows. Bookmark it,” he said.

Ted is not the only one pointing to this potential scenario. The analyst who goes by the moniker Ameba thinks a decisive jump beyond $72K may be followed by a further resurgence to as high as $83,600. On the other hand, plunging below $71K “would look like another deviation with 65K as a magnet and possibly lower.”

Another X user who commented on the topic was Aralez. They envisioned two scenarios, with the first being a push to $73,000 and then new local highs. The second possible outcome, though, is much more bearish and involves an eventual dip to $64,000. The analyst outlined April 10 as an important date for BTC’s future price performance due to the release of the US CPI data on that day.

For their part, Lofty claimed that the leading cryptocurrency is nowhere near its bottom. They even envisioned a high-volume sell-off this month that could suppress the valuation to $30,000.

Earlier this week, the popular market observer Ali Martinez also assumed that BTC might be on the verge of a renewed downtrend. However, he thinks that such a scenario could become a generational buying opportunity.

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Additional Warnings

BTC experienced another pump late last week, reaching as high as $70,000, but several industry participants described it as a classic bull trap. Among them was Crypto Analyst who said:

“Bull trap BTC. Don’t trust Sunday pump. Big dump incoming.”

The asset’s Relative Strength Index (RSI) also suggests a pullback may follow. The ratio briefly exceeded the bearish 70 zone, indicating the price has risen too much in a short period, which is typically seen as a precursor to a move south. On the contrary, falling below 30 is interpreted as a buying opportunity.