Bitcoin Drops 30% From ATH: Analyst Warns the Real Bottom May Be Far Lower

Bitcoin's price has experienced a significant downturn over the past month and a half, shedding over 30% of its value since reaching its all-time high in early October.

The lowest point so far occurred on Friday, when the price plunged below $81,000 for the first time since April. Bitcoin has since recovered approximately $5,000 from this low.

Potential for Further Decline

Analyst Ali Martinez has presented a more concerning outlook, suggesting that Bitcoin has historically found its bottom between the green and blue Pricing Bands. If this pattern repeats, it could indicate a further crash of up to 50%, with BTC potentially falling to $44,700, the level of the blue band.

Investor Behavior and ETF Outflows

Adding to the concerns for the leading cryptocurrency is the behavior of certain investors. As previously reported, some significant holders, including early investors, have been liquidating substantial portions of their Bitcoin holdings.

Investors utilizing the spot Bitcoin ETFs in the United States have also been reducing their positions. Over $1.2 billion exited these funds in the past week, despite a more positive market sentiment on Friday. BlackRock's IBIT fund, in particular, has witnessed considerable outflows.

Increased Exchange Inflows and Slumping Capital

Furthermore, Martinez indicated that the number of Bitcoin units sent to exchanges in the past week has surged to 20,000. This considerable amount, valued at nearly $2 billion, is likely being transferred to trading platforms with the intention of selling.

The popular analyst also cautioned that capital inflows into the broader cryptocurrency market have decreased substantially, falling from $86 billion just three months ago to the current $10 billion. These trends suggest that Bitcoin, along with the rest of the crypto market, may still face further challenges.