Is Bitcoin Going to $50000 After Falling Below $71000?

Bitcoin fell below $71,000 on Wednesday night, and traders are now asking a tough question: Is Bitcoin going to $50000?

Sharp Decline Sends BTC to October Lows

Bitcoin shed 7.2% in a single day, hitting $70,894 late Wednesday. That’s the lowest price we’ve seen since October 2024, according to The Block’s numbers. Ethereum didn’t fare any better, dropping 7.8% to land at $2,091.

The damage spread beyond digital assets. Coinbase stock closed 6.14% lower on Wednesday. Bitmine shares fell 9.17%. Over in traditional markets, the Nasdaq dropped 1.51% while the Dow somehow squeezed out a 0.53% gain.

Vincent Liu, who runs investments at Kronos Research, explained what happened. Bitcoin tried to rally but couldn’t hold support. That triggered a cascade of forced selling. Tech stocks were already tanking. Money kept flowing out of Bitcoin ETFs. Everything hit at once.

Is Bitcoin Going to $50000? Here’s What Could Trigger It

Let’s address the main concern head-on. Could we really see Bitcoin going to $50000 from current levels? Unfortunately, several red flags point to yes.

First, look at the macro situation. Peter Chung runs research at Presto. He noted that Bitcoin is simply tracking broader market weakness right now. When stocks get sold, crypto gets sold harder. This isn’t about Bitcoin fundamentals anymore.

Second, fear has taken over completely. The Crypto Fear & Greed Index sits at 12 right now. That’s deep in extreme fear territory. Chung compared current sentiment to the last bear market. Traders are genuinely panicking.

Third, the $70,000 level has become make-or-break. Market participants are glued to their screens watching this number. Break below it decisively, and the floor drops out fast.

Also Read: Spot Vs Leveraged Bitcoin ETFs: Which One Should You Bet On?

What Analysts Are Saying About the $50K Scenario

Some voices think the selling has gone too far. Chung believes most traditional investors still don’t get crypto at all. He sees massive untapped potential that the current panic ignores completely.

But here’s the hard truth. When credible analysts start seriously debating whether Bitcoin going to $50000 is likely, you’re already in trouble. That would mean another 28% crash from $70,000. We’re not talking about a healthy pullback anymore.

Liu laid out what he’s tracking for signs of a bottom. Has the forced liquidation wave finished? Is the overall sentiment showing any green shoots? Are ETF flows stabilizing at all? Until he sees improvement on these fronts, gravity keeps pulling prices lower.

The challenge with calling a bottom here is that none of those signals have flipped yet. Liquidations keep happening. Sentiment keeps deteriorating. ETF money keeps leaving.

The Bigger Picture Beyond Short-Term Pain

This crash reveals how much crypto has changed. Bitcoin used to march to its own beat. Not anymore. Now it trades like a leveraged tech stock. When the Nasdaq sneezes, Bitcoin catches pneumonia.

ETF flows tell a brutal story right now. Institutions aren’t stepping in to buy discounted Bitcoin. They’re heading for the exits. That’s critical context for anyone asking if Bitcoin going to $50000 is actually possible. When the smart money runs, retail can’t prop things up alone.

Also Read:  What Are Crypto ETFs? Wall Street’s New Obsession

The timeline matters here. How long will risk assets stay under pressure? If macro concerns persist for months, then yes, Bitcoin going to $50000 becomes increasingly probable. Markets can stay irrational longer than you can stay solvent, as the saying goes.

Chung’s optimism about long-term adoption potential isn’t wrong. Crypto still has enormous room to grow globally. But that’s a multi-year thesis. It doesn’t prevent a brutal bear market right now.

Can Bitcoin Hold or Will $50K Hit?

Right now, Bitcoin is clinging to $70,000 support. Lose that, and $65,000 comes into view quickly. After that, the question of Bitcoin going to $50000 stops being academic speculation and becomes an immediate reality.

Watch the metrics Liu mentioned closely. When you stop seeing massive liquidation events, that’s signal one. When Fear & Greed starts climbing out of the gutter, that’s signal two. When ETF flows turn positive, that’s signal three.

The macro environment holds the master key though. Until stocks stabilize and recession fears ease, crypto stays under the gun. The scenario of Bitcoin going to $50000 remains absolutely on the table if these conditions drag on.

Nobody knows exactly where the bottom sits. But we do know the easy money phase ended. What replaces it depends on economic forces that crypto can’t control.

Also Read: Crypto Market Cycles Explained: Bull Markets, Bear Markets & Bitcoin Halving

Why did Bitcoin drop below $71,000? 

Multiple factors converged: massive forced liquidations, technology sector weakness spilling over, continued outflows from Bitcoin ETFs, and broad selling across all risky assets.

What price level is critical for Bitcoin right now? 

The $70,000 mark represents crucial psychological support. A clean break below this level would likely accelerate selling momentum toward lower targets.

Is this similar to previous bear markets? 

Presto Research notes that current fear levels match what we experienced during the last major bear market cycle.

What could stop Bitcoin from falling further? 

Three main signals: liquidation activity exhausting itself, sentiment indicators recovering from extreme fear levels, and ETF flows stabilizing or reversing course.

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Disclaimer:

Look, we’re just journalists reporting the news here, not your financial advisors. Everything you read above is for information purposes only. Crypto is wild, unpredictable, and can absolutely wreck your savings if you’re not careful. Never invest money you can’t afford to lose. Seriously, we mean it. Do your own research, talk to actual licensed financial professionals, and remember that past performance means absolutely nothing when it comes to future results. The crypto market can turn on a dime, and what’s hot today might be toast tomorrow. We’re not responsible for your investment decisions, good or bad. Trade smart, stay safe, and don’t bet the farm on anything you read on the internet, including this article.