Bitcoin (BTC) could see a price drop to equally depression as $twoscore,000 if higher support levels fail to hold, an industry CEO said.

Speaking to Bloomberg on Tuesday, Pankaj Balani, CEO of digital asset derivatives exchange Delta Substitution, warned that there is a danger of fresh significant losses for BTC/USD.

Balani doubts altcoins' resilience to BTC dip

Bitcoin shed around 5% overnight on Monday, the latest in a familiar cycle of dips and rebounds below crucial resistance, which begins at around $59,500.

At the time of writing, the largest cryptocurrency traded at merely above $55,000.

For Balani, $50,000 now forms a significant line in the sand for bulls, and a failure to hold information technology would open up a new lower trading corridor with a floor at $40,000.

Cryptocurrencies in general, he added, "should move lower" under such a scenario.

BTC/USD one-hour candle nautical chart (Bitstamp). Source: TradingView

The perspective jars with the more optimistic projections from data-based analytics this week. As Cointelgraph reported, whale buying was previously tipped to keep BTC/USD at a minimum of $52,000.

A major cluster of support from whales — 120,000 BTC at $58,000 — nonetheless failed to cease brusque-term losses, leaving a question marker over the ability of smaller clusters lower down to practise likewise.

Cointelegraph additionally noted that exchange order book back up only begins at $l,000, with few bids betwixt that boundary and all-time highs of $64,500.

Altcoins come up downwardly from highs

Reacting to the latest price activeness, however, popular commentators were every bit cool as e'er, noting the overall volatility of the market was very much interim within defined contours.

On altcoins, a sense of a reset beingness underway was apparent on the day, with Ether (ETH) taking a sabbatical after hitting new all-time highs repeatedly in recent days.

Fresh Twitter activeness from Elon Musk, CEO of Tesla and SpaceX, had the potential to release a new spate of growth for Dogecoin (DOGE), which had paired about a week of gains to drop to around $0.fifty.