Bitcoin’s (BTC), a cryptocurrency that is currently trading at $40,000, has not broken through this barrier. This indicates that there remains little confidence in the market.
BTC is in decline for over a month. BTC could plummet to as low as $38K. Although the cryptocurrency market has turned bearish, it is unlikely that another crash will occur until after the FOMC meeting.
Traders’ enthusiasm in the cryptocurrency market continues to erode as a result of the market’s prolonged fall and geopolitical uncertainty. Peter Brandt is a veteran trader and anticipates a test at the Bitcoin price (BTC), below $32,000.
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Brandt tweeted that Bitcoin was on a bearish path, falling below the $38K mark in the past 24 hours. In the immediate future, he anticipates a test at $32,000. Bitcoin is still more concerned by his $28,000 estimate.
Also, bitcoin’s on-chain data doesn’t bode well as profit transactions have risen. This could indicate that profit booking is occurring at greater levels.
Analysts remain optimistic about Bitcoin, despite the jitters
Despite persistent concerns about the cryptocurrency market’s significant correlation with equities, analysts remain bullish on crypto.
Chris Burniske is a market analyst and Placeholder Partner VC partner. He believes Ethereum and Bitcoin will dominate the stock markets for years to come.
Burniske said in a tweet that the cryptocurrency market had “held up quite well” in comparison to high-growth stocks. BTC and ETH lost approximately 40% from their highs. However, other high-growth stocks fell between 60%-80%.
BTC market capital at $731.78 Billion according to the daily chart. Source: TradingView.com| Source: TradingView.com
According to on-chain data from analytics platform Santiment, traders’ confidence in BTC reclaiming its $40k level appears to be ebbing. Data from ETH and BTC shows a shocking 12.5-to-1 ratio of profit transactions per loss transaction.
The likelihood that BTC will drop below $32K seems high, as more trust is lost and less whale buying continues.
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BTC Now at $48K
Meanwhile, while no asset’s future performance can be predicted, Alex Kuptsikevich, senior market analyst at FxPro, forecasts Bitcoin will trade between $32,000 and $48,000 by the end of this month.
“May is regarded a relative success for BTC in terms of seasonality. Bitcoin has concluded the month up seven times and down four times during the last 11 years,” Kuptsikevich .
Kuptsikevich stated that he made this projection based on the cryptocurrency’s average gain of 27% and average loss of 16% in May, for a total gain of roughly 11%.
CoinGecko data shows that Bitcoin trades at around $38,528 per unit as of Tuesday evening.
Featured Image from Pixabay. Chart by TradingView.com