Bitcoin has fallen below $40,000 due to market sentiment that is becoming pessimistic. Market cap first cryptocurrency has not been able to rise above $50,000 and is moving within a narrow range of its current level.
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The number of negative predictions about Bitcoin and larger cryptocurrency are on the rise. Uncertainty around Russia-Ukraine war and the U.S. Federal Reserve’s (FED), interest rate hike seem to be two of the main causes for weakness on the global market.
The short-term bearish thesis seems to be the preferred position of legendary trader Peter Brandt. Pseudonyms shared their Bitcoin price predictions with Brandt, which suggests that the cryptocurrency may revisit key areas of support below $30,000.
This could BTC’s price to $28,000 or $27,000 as soon as May or June this year. Arthur Hayes, CEO of BitMEX, predicts the same. BTC, ETH and USD will plummet to between $30,000 to $2,000 each.
The chart below shows that Bitcoin would fall to its support zone, before rebounding into bullish territory. The first cryptocurrency by market capital could increase by approximately $100,000 in the following months. Brandt said:
It is possible. For many months, this has been my prediction. We’ll find out.
It is not possible to correlate the crypto market with traditional financial markets. Bitcoin prices have been rising in tandem to the Nasdaq 100.
BTC prices drop when big tech stocks fall. The following chart could provide more support for the bearish thesis.
Brandt shared this prediction. This suggests that the stock market will drop more in the big tech sector, which would impact Bitcoin prices and add pressure to the crypto market.
Bitcoin could provide short-term relief
Traders must take every prediction, especially from Hayes and Brandt, with a grain if they are not accurate. Market conditions may allow them to change forecasts or opinions.
To my Twitter uninitiated fans
As a chart trader, I am guided by the following principles
Strong opinions and weakly held beliefs
Flexible, flexible and not rigid in regards to anything
Positions are not opinions.
-A chart is not necessarily my opinion https://t.co/WwfqyYgx3O— Peter Brandt (@PeterLBrandt) April 22, 2022
Bitcoin is holding steady at the current levels in the short-term despite increased selling pressure. Material Indicators show significant support under the price.
BTC has more than $33 million worth of bid orders, ranging from $39,000 up to $38,000. These numbers suggest that BTC might bounce back in case there is any future price declines. With around $8,000,000 in asked orders, $41,500 is the biggest potential resistance.
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NewsBTC stated that there is a possibility of a market crash in the options markets. The market has seen a spike in sales of calls for May and June, as well as an increase in demand in put options. This means that traders are becoming bearish.