Fear Is Yet To Grip The Bitcoin Market, But It May Fall To $47K, Analyst Says

Even as prices plunge, one on-chain analyst, taking to Twitter, argues that the market is relatively composed and fear and panic haven't fully gripped it yet.

Bitcoin price dropped sharply on July 5 and breached two critical support levels at $60,000 and $56,500 in quick succession. This triggered a sell-off that saw BTC fall nearly 30% from all-time highs and is now in a bear breakout formation.

However, one on-chain analyst believes that the market is relatively composed and fear hasn’t fully gripped it yet.

Pointing to the Bitcoin Daily Realized Profit Loss ratio, the analyst said that unless there is an uptick in the number of addresses in red, indicating panic selling, the market can withstand more losses.

Even as prices crater below $56,500, the market, the analyst added, can fall to as low as $47,000, a level that “doesn’t look as terrible as it did three weeks ago when we were at 70,000.”

However, the analyst said that the shakeout should be slower to ensure a more orderly market correction.

Meanwhile, another analyst believes that this could be the best time to buy more Bitcoin at a discount, highlighting several fundamental factors that paint a long-term bullish picture.

Some of these tailwinds include the availability of spot Bitcoin exchange-traded funds (ETFs), regulatory clarity in the United States ahead of the presidential election, and the upcoming $16 billion payout by FTX trustees.

However, before there is stability and this week’s sell-off countered, there needs to be an uptick in new addresses. Once this is observed, it would mean that new investors are pouring in, creating demand for the coin. For now, prices are plunging, and fewer addresses are being created.