Analyst Jesse Olson has indicated that Bitcoin (BTC) could fall to around $23,980, representing a potential drop of over 60% from current levels if the US stock market suffers a significant downturn. Such a crash, exceeding 50%, would likely exacerbate sell-offs in the cryptocurrency market, as indicated by current trends in weaker ETF flows and low demand from major investors.
Olson's analysis includes a two-week price chart that highlights $23,980 as a critical downside target, derived from a proprietary Market Sniper Pro volume-weighted average price indicator. This indicator employs a long-term support line anchored from the 2022 bear market, suggesting that if market conditions worsen, this level could act as a significant support zone.
Market observers, including economist Gary Shilling, have noted the heightened risks in the stock market, predicting a potential recession by the end of the year. This environment could compel investors to reduce their exposure to cryptocurrencies, further influencing Bitcoin's trajectory.