The next domino? Analyst: Bitcoin may fall below $50,000

Despite the double positives of Tesla officially accepting Bitcoin payments in the United States and asset management giant Fidelity applying to launch a Bitcoin ETF, Bitcoin prices have been sluggish this week. Some technical analysts are concerned that Bitcoin may become the next domino as investors rush to lock in profits. If the stock market continues to weaken, Bitcoin is also expected to face more pain.

Currently, the latest trading price of Bitcoin on CoinDesk is $52,748. In the past 24 hours, it hit a low of more than two weeks at $50,458.10.

The largest cryptocurrency is down nearly 10% so far this week, according to FactSet.
Many analysts are concerned that crypto assets could also come under pressure as a large number of speculative assets have been under heavy selling pressure so far this week. Although Bitcoin is generally considered unrelated to the trend of the stock market and other assets, it has recently been in sync with the sell-off in crude oil futures and stocks. As the dollar rises, these assets have become increasingly difficult.
Fawad Razaqzada, a market analyst at ThinkMarkets, warned investors in a report on Thursday to be wary of greater downward pressure on Bitcoin, which could cause it to fall below $50,000.
“Judging from recent events, traders appear happy to sell rallies rather than buy dips,” he said. “So don’t be surprised if we see the market weaken again later in the day.”
“If so, this could be bad news for Bitcoin. Cryptocurrencies have been positively correlated with risk assets over the past year, and if this relationship remains strong, then the digital currency could follow risk assets lower,” he added.
He also said, "Even if stocks and other risky assets do not see further sell-offs on Thursday, Bitcoin traders need to be cautious, because in recent days we have seen more and more signs that risk appetite in the entire financial market is slowly fading." (Science and Technology Innovation Daily)