Bitcoin enters multi-month downtrend, may fall to mid-$50K, says trader

Bitcoin has entered a downward trend that could last for several months, according to former NYSE Arca options trader Eric Crown. In an interview with CoinDesk, Crown stated that BTC could fall to the low $60,000s or even the mid-$50,000s. He diagnosed that the cryptocurrency has been in a sideways and declining phase since last October, pointing to technical indicators such as a death cross on the monthly MACD and bearish signals from the 21-day and 55-day weekly moving averages. Crown also noted that investors typically sell speculative assets first and that traders have become wary of re-entering positions following the largest-ever forced liquidation event last October. However, he added that the current market likely represents a potential value accumulation phase rather than the end of the entire crypto market cycle.