Sales in the crypto money market intensified as the world’s largest cryptocurrency Bitcoin (BTC) lost another 5% and fell below $29,000. So, how long will this downward movement of BTC continue? Here are the expectations…
What’s next for Bitcoin (BTC)?
Bitcoin is trading at a price of $28,913 with a market cap of $560 billion, down 4%, according to cryptokoin.com data. Along with Bitcoin, the top ten altcoins have corrected anywhere between 5-10 percent as the bears seem to be taking a dominant position at the moment. Currently, $28,450 is a crucial support zone for Bitcoin. According to some experts, the biggest cryptocurrency could drop as low as $25,000.
Even at the current price, Bitcoin’s year-to-date gains are a staggering 75 percent. Also, sentiment around Bitcoin has turned positive recently, with hopes that the Fed can loosen monetary policy in the future. However, inflation will be an important measure to watch going forward, which has been specific so far and shows little signs of cooling off.
Is it possible for BTC to rise again to $30,000?
While crypto bears are currently taking a dominant position in the market, there are a few good signals that keep the optimism alive that the Bitcoin price could once again climb above $30,000. Bitcoin whales have once again started accumulating BTC after a long selling period, experts reported yesterday. The group of investors holding less than 1 BTC in Bitcoin has seen significant growth in their balances. According to on-chain data provider Glassnode, individual participants accelerated their Bitcoin purchases. At the same time, they increased the relative share of the total circulating supply by 1.78 percent. The data analyzed by Bloomberg includes the following statements:
Bitcoin has risen an average of 7 percent in three, five and 10 days after 17 such signals over the past five years. The study identified bullish periods using the token’s relative strength index, a momentum indicator that should be above 50.
Noelle Acheson, author of the “Crypto Is Macro Now” newsletter, writes that the recent pullback could be due to “an accumulation of leverage that could trigger a liquidation.” “This indicates that the downtrend is unlikely to be prolonged, as the recent support and positioning of derivatives indicates a tendency to accumulate,” Acheson says. However, some analysts have taken a cautious stance considering the recent US regulatory pressure in the crypto space.
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