Analyst Warns: Bitcoin Could Plunge 70% if Critical Support Breaks — Price Target Revealed
Despite Bitcoin’s recovery after the sharp dip on October 10, market sentiment remains cautious. The leading cryptocurrency has yet to regain bullish momentum, and concerns about a deeper correction are growing louder. While BTC continues to hover near the $110,000 mark, several analysts are warning that the price could be on the verge of a steep breakdown.
One such warning comes from crypto analyst RealMacro, who believes Bitcoin is approaching a major turning point. According to him, the market currently stands at a “critical inflection point,” where the price action could go either way. Although a rebound and new all-time highs are still technically possible, mounting bearish pressure suggests that a sharp decline may be imminent.
RealMacro points to a lack of strong momentum in recent weeks, as Bitcoin has failed to reclaim the $115,000 level. This stagnation, coupled with weak market participation, may be setting the stage for what the analyst describes as a “waterfall decline” — a rapid and steep drop that could push Bitcoin to new yearly lows.
If such a breakdown occurs, the analyst warns that Bitcoin could lose over 50% of its value in a relatively short time. Even more concerning is his longer-term target: below $30,000. This would represent a massive 70% drop from current levels and could trigger a broader meltdown across the crypto market, with altcoins suffering even heavier losses.
Investor sentiment reflects growing unease. The Bitcoin Fear & Greed Index, a widely followed metric that gauges market emotion, recently dipped into “Extreme Fear” territory. Although it has since edged upward slightly, the overall mood remains pessimistic, with many traders staying on the sidelines amid uncertainty.
Still, historically, periods of extreme fear have often preceded some of the most lucrative buying opportunities. Some seasoned investors view such moments as ideal for accumulating assets before the next major rally. However, the current situation presents a dilemma: whether to buy the dip in anticipation of a rebound or wait for confirmation that the market has stabilized.
Adding to the concern is the broader macroeconomic backdrop. Rising interest rates, tightening monetary policies, and geopolitical tensions continue to weigh on risk assets, including cryptocurrencies. These external pressures could exacerbate any technical breakdown in Bitcoin’s price, leading to a more severe correction than previously anticipated.
Moreover, liquidity in the crypto market remains thin. Large sell-offs can trigger cascading liquidations, especially in leveraged positions, accelerating price declines. If Bitcoin breaks key support levels around $110,000, it could trigger a wave of panic selling, further driving the price downward.
Technical analysts are closely watching support zones and moving averages. A decisive break below the 200-day moving average could confirm the bearish trend and attract even more selling pressure. Conversely, a strong bounce from current levels with increased volume could signal that bulls are regaining control.
Institutional interest, which played a significant role in Bitcoin’s surge earlier in the year, has also diminished. Recent data suggests a slowdown in inflows to crypto investment products, hinting at reduced appetite among professional investors. Without renewed institutional support, Bitcoin may struggle to maintain its current levels.
However, it’s worth noting that long-term fundamentals for Bitcoin remain intact. The next halving event, expected in 2028, historically correlates with bullish cycles. Additionally, growing adoption of blockchain technology and increasing integration of Bitcoin into traditional finance could provide a tailwind over the coming years.
In the short term, though, caution prevails. Traders are advised to monitor price action carefully and consider risk management strategies, especially if Bitcoin fails to hold above key psychological levels. A breakdown below $100,000 could act as a psychological trigger, potentially accelerating the sell-off.
In summary, while a bullish reversal is not off the table, current indicators suggest that Bitcoin may be on the edge of a significant correction. If RealMacro’s forecast proves accurate, the market could be in for a painful reset. Investors should prepare for heightened volatility and remain vigilant as Bitcoin navigates this critical juncture.