Renowned crypto analyst and FX Pro trader, Alex Kuptsikevich, has issued a cautionary note, suggesting that Bitcoin might face a significant panic sell-off if its price drops below the $60,000 mark in the near future. Market sentiments indicate that crypto traders are eyeing a break above $65,000 for a bullish market signal.

Bitcoin experienced a brief surge to $63,000 on Monday, accompanied by increases in Altcoins like Ether and Solana. However, the cryptocurrency has been fluctuating between $60,000 and $70,000 since March, with the recent halving event and reduced inflow from Exchange Traded Funds contributing to a bearish sentiment.

Analysts at crypto investment firm Ryze Labs emphasized the influence of short-term Bitcoin holders on the market. They noted instances where short-term holders, who hold Bitcoin for less than 155 days, greatly influenced market trends. Historically, peaks in short-term holder profits led to significant price falls within four to six months as they sold back Bitcoin to long-term holders. While institutional demand and improving macroeconomic conditions may currently support Bitcoin’s price, a decline could occur if these factors weaken in the future.

Source: CoinDesk