Bitcoin, Ethereum, Dogecoin Extend Losses As Market Remains Pessimistic: Analyst Forecasts King Crypto’s Plunge Before A Rise To $98,000 By October

Leading cryptocurrencies extended last week’s declines on Monday, as pessimistic projections on interest rate cuts kept the market under pressure.

What Happened: Bitcoin, slipped to the $65,000 zone, erasing gains from its advances to $71,000 earlier in the month. The second-largest cryptocurrency, Ethereum, cracked harder as the date for its spot ETF approvals was moved up to July 2.

The decline triggered liquidations of $348 million in the last 24 hours, with as many as 152,040 traders getting liquidated. Long liquidations alone accounted for $300 million.

The slump also poured cold water on the speculative market, as Bitcoin’s Open Interest fell 2.68% in the last 24 hours. A decline in OI, alongside a price decline, confirms a downward trend.

Moreover, the number of traders taking short positions on Bitcoin surged vis-à-vis those taking bullish positions on the asset, according to the Long/Short Ratio.

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The global cryptocurrency market cap stands at $2.38 trillion, dropping 2.60% in the last 24 hours.

Stocks started the week on a high note. The broader market index, S&P 500, gained 41.63 points, or 0.77%, to close at a record high of 5,473.23. The tech-heavy Nasdaq 100 rose 0.95% to finish at 17,857.02. The Dow Jones Industrial Average snapped a four-day losing streak to rise 0.49% to end at 38,778.10. 

This week, investors will focus on May retail sales data, due on Tuesday, and home sales and housing starts data, due later in the week.

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Analyst Notes: Well-known Bitcoin analyst Timothy Peterson outlined the digital currency’s median price path over the next three months. 

“Based on data going back 10 years, there is a 90% chance BTC will drop about 10-20% in the next 90 days. There is also a 2/3 chance it will finish the next 3 months higher by +50%,” Peterson stated. 

Keeping these projections in mind, he predicted Bitcoin’s plunge to $52,000 before recovering strongly to $98,000 by October. 

Another widely-followed trader, Moustache, noted that Bitcoin was still forming an inverse head and shoulders pattern.

“Ideally, the low of the right shoulder is where the left shoulder has found it’s bottom. After that, we shouldn’t see prices below $70,000 for a long time,” the trader remarked. “I would take advantage of this time.”