The price of Bitcoin (BTC) has failed to break through the $40,000 barrier, indicating that confidence in the cryptocurrency market remains sluggish.
BTC has been declining for more than a month. If it falls below $38K, it could fall all the way to $32K. While the crypto market is now bearish, another crash is improbable, at least until the FOMC meeting concludes.
Traders’ enthusiasm in the cryptocurrency market continues to erode as a result of the market’s prolonged fall and geopolitical uncertainty. Veteran trader Peter Brandt anticipates a test of the Bitcoin (BTC) price below $32,000.
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Brandt stated in a tweet that Bitcoin has completed a bearish course, plunging below the $38K level in the last 24 hours. He anticipates a $32,000 test in the near future. However, his estimate of $28,000 is more concerning for Bitcoin.
Additionally, on-chain data does not bode well for bitcoin, as profit transactions have surged. This indicates that profit booking may be occurring at higher levels.
Analysts Remain Upbeat On Bitcoin, Despite Jitters
Despite persistent concerns about the cryptocurrency market’s significant correlation with equities, analysts remain bullish on crypto.
According to market expert and Placeholder VC partner Chris Burniske, Bitcoin and Ethereum have dominated the stock market for years and will continue to do so.
Burniske said in a tweet that the cryptocurrency market had “held up quite well” in comparison to high-growth stocks. While BTC and ETH have lost roughly 40% from their all-time highs, several high-growth stocks have fallen between 60% and 80%.
BTC total market cap at $731.78 billion on the daily chart | Source: TradingView.com
According to on-chain data from analytics platform Santiment, traders’ confidence in BTC reclaiming its $40k level appears to be ebbing. The BTC and ETH Ratio of Profit/Loss Transactions data suggests a staggering 12.5 to 1 ratio of profit transactions to loss transactions.
Thus, the likelihood of BTC sliding below $32K appears to be high as trust continues to dwindle and whale purchases stay low.
Suggested Reading | Bitcoin Briefly Tops $40,000 As More Countries Adopt Crypto
BTC At $48K This May
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%.
As of Tuesday evening, Bitcoin was trading at approximately $38,528 per coin, CoinGecko data show.
Featured image from Pixabay, chart from TradingView.com