Bitcoin remains down, and the world’s largest crypto seems primed for bearish tendencies. The crypto ended the previous eight weeks in red and appeared ready to extend such narratives. For now, maximalists have all reasons to fear as BTC losses new support barriers.
May-Day!!!
While publishing this blog, the digital token traded at $28,800, following a 1% loss within the past day. Considering calm sessions within the crypto world, BTC will likely close the week within the $29,000 territory. Volume remains another concerning this, approximately 25% down since yesterday.
The leading crypto by value has seen massive volatility in May, with the Terra crisis dented recovery hopes. The crypto market lost billions following the crash, deteriorating the BTC structure. For now, Bitcoin’s upside path remains dreary.
Though Bitcoin survived, it consolidated within the $29K – $30K territory. Moreover, metrics indicate more pain to come amidst the latest discouraging data.
The latest tweet by Glassnode showed the NVT signal at 4-year lows of 233.9. The previous four-year lows emerged on May 25, adding more tension to the BTC community.
Another Twitter post raised eyebrows within the cryptocurrency market, with CryptoQuant predicting two-three months of lackluster price movements.
Then another capitulation could appear, triggering a 30 – 50% price plunge. That confirms Bitcoin at the market bottom of the charts as the crypto struggles to surge beyond the $30,000 mark.
Analyst’s Hope on Bitcoin
Deutsche Bank Research analyst Marion Laboure told CNBC that BTC value would rise according to individuals’ beliefs about its worth. For now, BTC traverses the red area and seems prepared to conclude a 9th consecutive week in losses.
Moreover, the coin stayed more than 50% down from the ATH of $68K. Nevertheless, Laboure revealed four facets to help Bitcoin march towards the ‘promised land.’
First and foremost, she trusts in the psychology behind cryptocurrencies, which Laboure calls the ‘Tinkerbell effect.’ That means the market attitude towards BTC will measure its growth potential in the future.
Another thing is demand & supply. The 21 million fixed total supply will eventually trigger increased BTC demand, translating to price surges. Thirdly, regulation. Laboure trusts upcoming crypto regulations might welcome increased cryptocurrency adoption.
Finally, she added volatility as a facet to gauge BTC growth. Though volatility plagued the crypto space over recent years, the Terra debacle is the latest example. However, increasing adoption plus regulation might see volatility favoring BTC and the crypto space.
