Analysts Warn Crypto Market Downside Risk as Bitcoin Faces Potential Retest of Lows
Leading crypto analysts from Coinbase, Glassnode, and prominent financial figures such as Steven Cohen, Paul Tudor Jones, Michael Gayed, and Katie Stockton of Fairlead Strategies, are signaling continued short-term weakness in the cryptocurrency market, especially for Bitcoin. There is a consensus that the market could soon retest, or even fall below, its recent lows, with Stockton warning that new lows since April are possible, reflecting growing market caution. While some long-term Bitcoin holders are accumulating during price dips, analysts note prevailing bearish sentiment, highlighted by recent breaks below key technical levels like the 200-day moving average for Bitcoin and the COIN50 index. Both Coinbase and external experts view current gains as likely temporary bounces rather than a sustained rally. A defensive risk approach is advised, with market stabilization and potential rebound not expected before late Q2 or Q3 2025, possibly linked to an end of US quantitative tightening and improved global liquidity. In the meantime, increased volatility and downside risk remain, emphasizing the need for active risk management and close monitoring of price action near support levels. Crypto traders should be prepared for extended uncertainty and market turbulence.
Bearish
Both summaries emphasize a persistently bearish outlook for the crypto market, particularly for Bitcoin. Experts highlight short-term weakness, the risk of retesting or breaking recent lows, and prevailing negative sentiment, especially after technical breakdowns like the 200-day moving average. While some mention the potential for accumulation by long-term holders and possible future stabilization if global liquidity improves, the dominant theme is increased downside risk and volatility in the near term. Until macroeconomic conditions change, traders should expect further market pressure and weak price action, making a defensive trading approach prudent.