Bitcoin could fall to $65,000 if declines in AI- and semiconductor-related stocks lead to broad portfolio liquidations, according to a forecast.
Russell Thompson, CIO of Hilbert Group, identified $72,800 and $72,700, where a moving average is located, as Bitcoin’s short-term technical support levels. He highlighted $71,900 in particular as a key trendline support level.
Thompson explained that if declines in AI and semiconductor stocks trigger margin calls for hedge funds and others, they may sell non-core assets first, with Bitcoin potentially becoming one of the assets targeted for sale. If $71,900 breaks, there is little clear technical support around $70,000, making $65,000 the next major price area, he analyzed.
However, he said funds had shifted from cryptocurrencies into AI, semiconductor and technology stocks when Bitcoin was forming its previous highs. He therefore expects some funds could return to the cryptocurrency market after those positions are liquidated. He also did not rule out the possibility of Bitcoin rising before the end of the year.