Bitcoin has seen a sharp decline over the past few days, dropping below $80,000 again very briefly in the past 24 hours. Although the asset’s price has since recovered and is now trading above $80,000 at the time of writing, there is still lingering selling pressure of another break below this price level again before the end of the week.
The latest remarks from Arthur Hayes, co-founder of BitMEX, suggest that this pullback is part of a typical bull market correction, and Bitcoin might keep declining until it reaches a bottom around $70,000.
Arthur Hayes’ Bitcoin Price Outlook: $70K Bottom in Sight?
Bitcoin’s crash from its recent all-time high of $108,780 has been about 30%. Arthur Hayes recently weighed in on the crash, describing it as a typical correction in a bull market. In a recent post on X, Hayes outlined his expectations for Bitcoin’s trajectory, stating that Bitcoin is probably going to extend its corrections in the short term. Particularly, Hayes noted that the BTC price is “likely to bottom around $70K.”
Hayes advised that traders attempting to buy the dip at the current price might experience more downside before the market stabilizes. For investors unwilling to take on more risks, he recommends waiting for central banks to begin easing monetary policies on the crypto industry before buying into BTC. He noted that a crash in the S&P 500 and the Nasdaq-100 would be ideal for loading more BTC.
Furthermore, a combination of stock market turmoil and economic stress leading to intervention from the Federal Reserve, the European Central Bank, the People’s Bank of China, and the Bank of Japan would signal an ideal entry point for accumulating Bitcoin.
The timing of such an event remains uncertain, but Hayes’s strategy suggests waiting for clear signals from central banks before making large-scale investments.
Short-Term Targets: BTC’s Path To $70K Or A Recovery?
Still, several critical price levels must be tested before Bitcoin can reach this price bottom. On March 9, Hayes noted that Bitcoin was on track to retest $78,000, warning that failure to hold that level could result in a move toward $75,000. During that time, BTC started the week with a decline from $85,000 to $81,000. He also pointed out the significant open interest in options contracts between $70,000 and $75,000, which could trigger a volatile reaction if BTC enters that range.
For now, BTC has rebounded slightly, reclaiming the $80,000 mark, but the sentiment regarding buying pressure and selling pressure is currently uncertain. At the time of writing, Bitcoin is trading at $82,725, up by 1.67% in the past 24 hours.
Featured image from iStock, chart from Tradingview.com
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