Bitcoin May Correct to $72,000, Says Expert

The price of the leading cryptocurrency could plummet to a support level of $72,000. This view was expressed in a conversation with Cointelegraph by Nexo platform analyst Ilya Kalchev here.

According to him, the market is currently “regrouping.” The swift recovery of digital gold is in doubt due to a sharp deterioration in investor sentiment.

“A temporary pullback is possible while the market fills the gaps after a rapid rise. Bitcoin is more likely to form a stable support in the $72,000-$80,000 range,” Kalchev noted.

The specified level “could become the foundation for a more sustainable recovery, reducing the likelihood of a deep correction.”

Technical analyst Omkar Godbole is confident that a Bitcoin sell-off could potentially be a “healthy” retest of the $73,835 mark. The downward momentum may wane as it approaches this level, creating conditions for more significant growth.

Widespread Fear

Amid increased bearish pressure on February 27, the fear and greed index fell to 10 points, indicating a zone of extreme panic. Such levels were last seen in June 2022, following Bitcoin’s drop to $17,500 (-37% for the month).

At the time of writing, the indicator stands at 20, also pointing to widespread panic among market participants.

The deterioration in investor sentiment is attributed to a range of external and internal factors, according to Bitfinex analysts:

“The sharp drop in Bitcoin’s price, regulatory uncertainty, platform hacks, and the decline in altcoin values have collectively led to an extreme level of fear in the market.”

On a positive note, experts highlighted the rapid recovery of Bybit’s liquidity.

At the time of writing, the leading cryptocurrency is trading at $84,650. Over the past 24 hours, the asset has risen by 3.3%, according to CoinGecko.

So far, all “bull market peak indicators” collected by Coinglass suggest the continued retention of digital gold in portfolios.

According to Matrixport forecasts, the correction will last until March or April.

Analysts believe that with the growing popularity of trading digital gold by TradFi investors through Bitcoin ETFs, macroeconomic factors have become more significant for the pricing of the leading cryptocurrency.