Bitcoin has experienced a significant drop in the last few days, briefly falling below $80,000 within the last 24 hours. Although the price has since bounced back and is now trading above that mark, there remains persistent selling pressure that may lead to another dip below this level before the week ends.
Recent comments from Arthur Hayes, co-founder of BitMEX, indicate that this downturn is a standard pullback in a bull market, suggesting that Bitcoin could continue to decline until it reaches a bottom around $70,000.
Arthur Hayes’ Bitcoin Price Forecast: Is a $70K Bottom Approaching?
Bitcoin has fallen approximately 30% from its recent all-time high of $108,780. Arthur Hayes recently shared his views on this decline, describing it as a typical correction seen during a bull market. In a recent X post, Hayes detailed his predictions regarding Bitcoin’s future path, asserting that BTC will likely continue its corrections in the near term. Specifically, he anticipates that Bitcoin is “likely to bottom around $70K.”
Hayes cautioned that those looking to buy at the current price may face additional downside risks before the market stabilizes. He advised investors not willing to assume further risks to wait for central banks to ease their monetary policies regarding the crypto sector before investing in BTC. He pointed out that a dip in the S&P 500 and the Nasdaq-100 would provide a favorable opportunity to buy more BTC.
Moreover, a combination of stock market instability and economic strain that prompts action from the Federal Reserve, European Central Bank, People’s Bank of China, and the Bank of Japan would signify an optimal phase for accumulating Bitcoin.
While the timing of such developments is uncertain, Hayes’s strategy emphasizes waiting for definitive signals from central banks before making large investments.
Short-Term Targets: Can BTC Reach $70K or Recover Sooner?
Nonetheless, several key price levels must be assessed before Bitcoin can potentially touch this bottom. On March 9, Hayes remarked that Bitcoin was set to retest $78,000, warning that failing to maintain that level could push the price toward $75,000. At that time, BTC began the week with a decrease from $85,000 to $81,000. He also highlighted the considerable open interest in options contracts between $70,000 and $75,000, which could lead to significant volatility if BTC enters that range.
Currently, BTC has seen a slight rebound, regaining the $80,000 threshold; however, market sentiment about buying and selling pressures is mixed. As of this writing, Bitcoin is trading at $82,725, reflecting a 1.67% increase over the past 24 hours.
Featured image from iStock, chart from Tradingview.com
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