Bitcoin Plunges 15%, Analyst Warns of Potential Drop to $72K-$74K

Bitcoin's price has been volatile in recent days, with the cryptocurrency reaching its lowest point in three days on February 27th, marking a significant decline of 15%. This decline has raised concerns among investors and analysts alike. Markus Thielen, founder of 10x Research, shared insights with clients suggesting that, in a pessimistic outlook, Bitcoin may plummet to the range of $72,000-$74,000. However, Thielen also noted that a recovery could be anticipated after this potential drop.

Thielen's analysis focused on the average entry price for short-term holders, those who have held Bitcoin for less than 155 days. He identified a crucial support level at $82,000, which is seen as a critical demand zone that has already been tested. Historically, during bullish trends, Bitcoin tends not to linger below this threshold, while within bearish phases, the cryptocurrency frequently trades under this level for extended periods.

It is important to note that Bitcoin's performance has been disconnected from global central bank liquidity metrics, which has added to the uncertainty surrounding the cryptocurrency's price movements. As the market continues to be volatile, investors and analysts will be closely watching Bitcoin's price action to gauge the potential for a recovery or further decline.