Bitcoin (BTC) Price Prediction 2024-25: Is the Worst Behind Us?

Bitcoin [BTC] has twice faced rejection from the short-term range highs at $58.8k in two days. After losing the psychological $60k support last week

Bitcoin [BTC] dropped below the crucial psychological support of $60,000 last week and faced two days of rejection from the short-term range highs at $58.8k.

The market sentiment was fearful after the losses and traders were left wondering whether BTC will finally begin to rebound or if there is more pain to come.

At press time, a rising accumulation trend score signaled that buyers were willing, but other metrics implied the latter.

Crypto analyst Axel Adler highlighted the current average losses of short-term holders (STHs) in a post on X.

While the losses matched that of June 2023, the magnitude was far lower than the pain seen in 2021 or 22.

It signaled a potential local bottom, but also showed that traders and investors must be prepared for the worst-case scenario of a steeper price drop on the charts.

Clues that Bitcoin’s local lows are behind us

CryptoQuant observed that the trader realized profit/loss margin was at -17%.

This was in the same ballpark as the market bottoms over the past two years, reinforcing the idea that BTC is more likely to rebound higher than to drop lower.

According to Founder and CEO of CryptoQuant Ki Young Ju, whales tend to use leverage at their cyclical bottoms, making the markets over-leveraged and forcing another downward price flush.

At press time, whales were not over-leveraged, which could have set the stage for a deeper correction below the $50k-mark.

Traders were humbled after trying to catch the breakout and ATH

From the final week of May to the 3 July, the estimated leverage ratio on exchanges rose quickly.

During that time, the price of Bitcoin was hovering around $67k-$69k.

As the price fell below $66k, the leverage ratio climbed once more, indicating that traders were trying to time the bottom out of greed.

Over the past week, their hopes were quelled by BTC’s sustained descent. The leverage ratio also fell lower, which could be healthy for the market.

Overall, it is hard to say with certainty that Bitcoin has formed a bottom.

Several bottom signals have been flashing and seller pressure might begin to drop. Even so, investors should still have a plan of action in case the price falls below $50k.