Our Bitcoin price prediction has flipped to bearish as the price dipped to its fresh 52 week lows last week. BTC price plummeted to $24,500 on some exchanges; however, it immediately recovered to $28,000 within a few hours. Most of the cryptocurrencies dipped to record lows last week, with many marking their fresh 52-week lows. The ongoing slump is attributed to the massive sell-off in traditional markets that began after the recent announcement of rate hikes.
At the time of writing, Bitcoin is trading at $30,340, and our Bitcoin price prediction is still bearish. However, while the price is already 25% up from last week’s lows, many analysts fear the worst is yet to come. This is mainly because many investors are prioritising capital preservation over Bitcoin investment in the current economic scenario.
As per the latest bitcoin news today, Terra’s LFG has announced that they have liquidated around 80,000 Bitcoin last week to support the UST pegging. However, all this capital has gone in vain as UST is still trading at $0.09, which is 91% below its peg value of $1. This also explains the increased sell pressure on Bitcoin during the whole last week.
Technical analysis of Bitcoin suggests that a big move could be on the cards. However, a relief rally to around $35,000 is also possible as BTC price has already printed seven red weekly candles. This is only the first time in history that Bitcoin has kept going down for seven consecutive weeks.
The $35,000 price level also aligns with the 0.618 Fib level of the recent retracement from $40,000. The 4H chart also suggests that the price could be forming another bear flag. Currently, the biggest cryptocurrency by market cap is trading 56% below its 2021 all-time high of $69,000.
Any bullish bitcoin price prediction seems to be a far cry until bitcoin closes a week above $40,000. The global markets have entered into a risk-off mode which might prolong the ongoing sideways price action. Many investors are sitting on the sidelines, anticipating another crash before the next leg up. Nevertheless, Bitcoin has a history of going against the broader market sentiment, and a surprising short-squeeze is also likely.
This post was last modified on May 17, 2022, 15:45 BST 15:45