The price of Bitcoin, the leading cryptocurrency, recently experienced abnormal volatility, plunging to an intraday low of $57,002.
According to data provided by CoinGlass, more than $120 million worth of crypto has been liquidated over the past 24 hours alone.
Pseudonymous Bitcoin trader @Alejandro_XBT, who boasts more than 120,000 followers on the X social media platform, has predicted that the Bitcoin price could potentially test the $30,000 level.
The chartist drew parallels between Bitcoin’s current price action and 2022. However, it is worth noting that the FTX collapse was a major bearish catalyst since the entire industry appeared to be on the brink. It would likely take another significant black swan event to push Bitcoin that low.
Recently, the price of Bitcoin plunged all the way to the $49,000 level due to contagion from global equities markets. However, Bitcoin managed to recover in a relatively short span of time in tandem with stocks since the crash ended up being very short-lived.
Still, Bitcoin failed to gain a foothold above the $60,000 level, and it has ended up under severe selling pressure once again.
Notably, banking giant JPMorgan correctly warned traders not to get overly excited about the recent price bounce, warning that there were no obvious bullish catalysts that could sustain the momentum.
Next month, however, the U.S. Federal Reserve is expected to finally implement a rate cut, thus injecting some optimism into the market.
As reported by U.Today, prominent commodity trader Peter Brandt predicted that the cryptocurrency could still surge to $90,000 during this cycle if history is any guide.