Bitcoin Price Returns to Below $30K…Here’s Why a $24K Crash Could Possibly
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Answer Bitcoin Price Returns to Below $30K…Here’s Why a $24K Crash Could Possibly
After a green weekly close in contravention of the previous nine red weekly closes, followers are optimistic that Bitcoin has finally found its way to rise and stay above the $30,000 level.
But Bitcoin failed in its attempt to break the $32,000 level, and it has fallen dramatically in the past 24 hours.
Bitcoin is down more than 5% at $29,540, sticking to the same narrow range seen for over a month.
Technical indicators show that Bitcoin could drop below $24,000 in the next few weeks.
Bitcoin price is expected to see increased selling pressure ahead of key US inflation data due this week.
Other factors, such as increased regulatory scrutiny of cryptocurrencies, could lead to further losses for Bitcoin.
Read:Large Bitcoin addresses hold approximately 48% of the total Bitcoin supply
Will Bitcoin Deliver and Fall Below $24,000?
According to popular crypto analyst SmartContracter, Bitcoin is trading in a bear flag structure, with a pattern set that indicates more losses.
The analyst expects Bitcoin to surrender below $24,000 which could present a buying opportunity.
He also noted that the recent price action of Bitcoin plays a role very similar to that seen in 2018, where Bitcoin traded in a narrow range for several months before dropping sharply by more than 50%, to $3,000.
Bitcoin will also likely behave similarly to 2018, the year the Federal Reserve raised interest rates, before 2022.
As such, and with more interest rate hikes on the horizon, Bitcoin could see more capitulation.
Read:Learn about the impact of the Chinese government’s proposal to ban mining on miners
Inflation data is a moment of success or failure for the markets:
US inflation data for May, due next Friday, is expected to play a key role in determining market sentiment in the coming weeks.
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After inflation calmed down a bit in April, the crypto community will be watching for any further price declines in May.
Data from MarketWatch shows that the general consensus could reveal a reading of 8.2% on an annual basis in May, compared to a reading of 8.3% in April.
Any reading below the general consensus is likely to cause Bitcoin to rally higher.
But the opposite may lead to a more severe deterioration in the markets.
The major crypto regulators due to be released this week could also determine the movement of Bitcoin.
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