Currently, the escalation of conflicts in the Middle East is putting pressure on global financial markets. At the same time, Bitcoin is facing serious concerns about a potential historic decline, as market participants seem to be preparing for a deep correction in risk assets.
As the latest warning signals emerge, Bitcoin has shown signs of fatigue, dropping below the $68,000 mark on Monday after a decline over the weekend.
Risk of Historic Collapse
The ongoing price trend also reflects similar pressures, with Bitcoin's current trading price down over 46% from last year's all-time high.
Some analysts suggest: “Prepare for a historic collapse. This is far worse than the crash during the COVID-19 pandemic. The stock market, Bitcoin, all assets will be affected. You have been warned.”
Deeper Troubles Ahead
Currently, Bitcoin lacks a clear directional force in the short term, leading to ongoing sideways consolidation. However, broader structural indicators suggest that the market may face another round of declines, with prices potentially retreating to the $57,000 to $60,000 range. Any short-term price increases are viewed as liquidity-driven rebounds before further declines.
Although the market has not completely ruled out the possibility of a short-term price rebound, these rebounds are more seen as opportunities to increase short positions rather than signals of a trend reversal.
“Doctor Profit” points out that macroeconomic conditions are key factors leading to the current risk-averse environment, including delayed interest rate cut expectations, rising inflation indicators, and increasing liquidity pressures.