Bitcoin Crash Could Deepen to $38K, Say Analysts—Here's Why

💡 DMK Insight

Bitcoin’s recent drop from its October high isn’t just a blip—historical patterns hint at further declines ahead. Traders need to pay attention to how past sell-offs have often led to deeper corrections before any real recovery kicks in. If Stifel’s analysis holds, we might see Bitcoin testing lower support levels, which could trigger stop-loss orders and exacerbate the downturn. This could also affect altcoins, as they often follow Bitcoin’s lead. Keep an eye on the broader market sentiment; if fear escalates, it could lead to a flight to safety, impacting liquidity across the board. But here’s the flip side: if Bitcoin manages to hold key support levels, it could set the stage for a rebound. Watch for any bullish divergence on the daily chart, which might signal a shift in momentum. The next few days are crucial—traders should monitor price action closely for signs of capitulation or stabilization.