Investment expert: 'Bitcoin will drop to $60,000 - and then explode'

The crypto market is currently in an exceptionally quiet period that has left investors bored, but analyst Sykodelic estimates that Bitcoin is building its way toward dramatic price movements - long before the fourth-quarter bottom that many in the market are expecting.

'The lack of volatility and the compression we are seeing here always end in only one way: massive movements,' the analyst explained.

According to him, after the $65,300 level was broken and showed a weak weekly close, he entered a short position with the goal of taking advantage of a quick drop toward $60,500 that will clear the accumulated liquidity - before a sharp turn upward.

In his estimation, the February low in the $60,000 area remains the central macro bottom. The scenario he describes includes a 'bear trap': late sellers will open short positions, only to absorb a quick surge that will squeeze them and push the coin's price above $67,000 and into the mid-$70,000 range.

This forecast receives partial reinforcement from other factors in the market. Analyst Crypto Patel noted that the market fund premium index is holding at a level of about 0.14, and argued that 'the signal is quietly bullish' as institutional selling pressure is not yet appearing in the data. At the same time, analysts Ali Martinez, Michaël van de Poppe, and Merlijn The Trader pointed to signs of the end of the correction, including a rare buy signal on the monthly TD Sequential indicator.

In practice, Bitcoin is showing nervous volatility: at the beginning of last week, it dropped to $62,200, rose back to $65,000, and was halted following another delay in the passage of the CLARITY Act in the US Senate. A weak employment report on Friday pushed it to $65,400, and it is now trading around $65,000 - a daily increase of about 0.8%, but still a decrease of about 45% over the last year.