After getting tired of a rally, the cryptocurrency market is preparing for the consolidation phase. Bitcoin is struggling to get $30,000 after diving towards $27,000. Analysts are exploring what the future holds for the leading cryptocurrency.
Bitcoin price can rise in these conditions!
Will Bitcoin price shine as stock market investors say “Sell and Go in May”? Crypto analyst Aaryamann Shrivastava seeks an answer to this question. In the past, the Bitcoin price has had a rather surprising response not only to the stock market crash but also to the banking crisis. While banks that crashed in the first quarter of the year initially brought the stock and crypto market down en masse, BTC soon started to rise. Then, within ten days, the leading cryptocurrency rose 40%.
BTC 1-day chartThis is because towards the end of 2022, Bitcoin has diverged from the stock market, regaining its “safe asset” status and gold-like “inflation protection” label. As you follow on Kriptokoin.com, even this week when news of First Republic Bank’s failure came in, BTC rose by about 8%. So, as the “Sell in May” trend takes shape and stock market performance remains poor, Bitcoin price will have room to welcome traders and investors from the equity world.
Also, the Bitcoin return on supply is still quite low at 74%. Profitability rose from 45% in the last four months to a 12-month high. However, there is still room for growth before we see a market peak. Usually, a market peak is marked when more than 95% of the supply becomes profitable, causing selling pressure. Until then, BTC’s earnings chart is in good shape.
Bitcoin supply in profitLooking at the broader market conditions, Bitcoin price is likely to potentially observe some green candlesticks on the charts. This is true as long as altcoin season doesn’t take over and Bitcoin’s dominance drops below 40% from the current 48.63%. At the same time, traders and investors should pay attention to the upcoming rate hike. Because it is possible that an increase of more than 25 bps will cause prices to fall.
Bitcoin is ready to hit an all-time high!
Bitwise Asset Management chief investment officer Matt Hougan says he is confident that Bitcoin (BTC) will hit all-time highs. Hougan notes that Bitcoin will likely surpass the $30,000 level in the near term. He suggests that it will ultimately hit all-time highs next year.
Hougan states that crypto markets have been rocked by scandals after surging so quickly last year, but digital assets are poised to recover after clearing excessive leverage. In this context, Hougan makes the following statement:
We will definitely go above the $30,000 level. We will eventually reach all-time highs. You know, we had a reset last year with all the crypto issues around FTX and LUNA. It had grown so big, so fast, and we exploded. But we recovered and reset. Now we have increased 77% since the beginning of the year. The best performing asset class in the world…ATH, maybe not this year, but definitely next year.
Leading cryptocurrency faces ‘Moment of Truth’
Crypto analyst Justin Bennett says Bitcoin is facing a moment of reality. Bennett suggests that BTC will continue to rise as long as it stays above $28,800.
Source: Justin Bennett/TwitterBennett also notes that if BTC stays above $28,800 this weekend, it will rise to a trendline approaching $32,000. In this context, the analyst makes the following statement:
This weekend is the ‘moment of reality’ for BTC. It closed below $28,800 last week and is open quarterly at $28,450. So Bitcoin needs to stay above this area on Sunday to remain constructive and trend higher in May. If we lose this on the higher timeframes we will experience a second divergence.
Source: Justin Bennett/TwitterBitcoin trading volume signals bullish
Data from on-chain analytics firm Santiment reveals that altcoins are losing interest as Bitcoin’s price dominance solidifies. The “transaction volume” metric measures the total daily value (USD) of a cryptocurrency exchanged on the Blockchain. The metric now points to this bearish trend in altcoin interest.
The chart above shows the recent sharp increase in Bitcoin trading volume, coinciding with significant price fluctuations. The last period of high volatility has been particularly intense. It also reached trading volume levels that exceeded the previous month’s indicators. The indicator has recently crossed over $30 billion. Thus, it reached its highest point since March 22, 2023.
Bob Baxley, CTO of Maverick Protocol, reviews Bitcoin’s recent performance. Baxley says it shows confidence in investors’ ability to maintain value even in turbulent situations. “It is clear that Bitcoin and other crypto assets are acting as the safe haven that many envision for this class of technology,” Baxley says. Furthermore, Baxley emphasizes that Bitcoin, Ethereum and other key digital assets gained value just hours after First Republic’s shares fell by nearly 50%.
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