After a brief cooldown on August 5, Bitcoin quickly recovered from the $50,000 mark due to geopolitical uncertainties and recessionary pressures.
The top cryptocurrency has been stabilizing between $55,000 and $57,000 over the past day, hitting a brief local high of $57,220 earlier today. At press time, the asset was trading at $57,033, up 1.89% over the past 24 hours.
Also read: Bitcoin will fall to $11,000, predicts Crypto Tycoon
Market analysis and forecasts
Risks of a major decline
Analysts point to the risk of an even more significant decline. Many see the asset’s current situation as an important buying opportunity.
Also read: Ripple: Can $1,000 worth of XRP become $1 million in 10 years?
According to a crypto market analyst, Bitcoin investors should wait for the asset’s price to fall to the low $40,000 range to secure the best entry price before the next bull run. It should be noted that Bitcoin was trading at around $42,577 in February this year. Markus Thielen, Head of Research at 10x Research, said:
“To optimally time the next bull market entry, we are targeting a Bitcoin price drop to below 40,000. Then we would expect another major rally attempt.”
Accumulation potential
Several other analysts also believe that the asset could crash before rising again. Investors can accumulate the king coin before it skyrockets. Currently, BTC is 22% below its all-time high of $73,750.
Bitcoin wallets in profit
According to statistics from IntoTheBlock, 9.87 millionn Bitcoin addresses, the majority of which (6.88 million wallets) purchased the asset at an average price of $66,441, are still losing money.
Also read: Europe’s fourth-largest hedge fund announces $500 million worth of Bitcoin ETF holdings
In addition, 2.99 million holders paid an average of $59,978 for Bitcoin. Currently, 79% of Bitcoin owners are making profits. About 18% are suffering losses.
