Bitcoin Could Fall to $24,000

Price Bitcoin 1 week wobbly

The cryptocurrency market has been quite volatile this past week. The price of the world’s largest cryptocurrency sometimes jumped to $41,000, but at other times plummeted to $37,000.

Despite some strong bullish sessions, the overall trend of Bitcoin for the week remains bearish. Bitcoin price has moved away from the important level of $40,000/dong, towards the $38,000 mark, the lowest level in the past 1 month.

The world’s largest cryptocurrency Bitcoin. (Image: Getty Images)

Over the past week, Bitcoin price has increased and decreased continuously, trading around the threshold of 37,000 – 41,000 USD. In the first session of the week (April 25), Bitcoin price quickly plunged to $ 38,000, the lowest level in the past 1 month.

By April 26, the Bitcoin price turned to rise sharply, at one point reaching nearly $41,000. On April 27, the Bitcoin price suddenly dropped, reaching the $ 37,000 mark at one point. On April 28, the price of Bitcoin rose again above the threshold of $ 39,000.

However, on April 29, the price of Bitcoin rose to the $40,000 mark. On April 30, the Bitcoin price suddenly dropped sharply, down to the $38,000 mark. By May 1, the Bitcoin price continued to plummet, reaching the $ 37,000 mark.

Analysts said that Bitcoin and many cryptocurrencies fell sharply last week due to concerns about rising interest rates and a sell-off in US technology stocks.

The correlation between Bitcoin prices and stocks is increasingly close. Bitcoin prices often rise and fall according to the US stock market. The sell-off in technology stocks spread due to concerns about the US Federal Reserve (FED) continuing to tighten monetary policy.

Experts say that the price of Bitcoin and many other cryptocurrencies are being affected by tight monetary policies and increasing interest rates in many countries. Tightening monetary policy and raising interest rates higher will increase borrowing costs and potentially reduce investor appetite for risky assets like cryptocurrencies.

Recently, the price of Bitcoin has increased and decreased erratically due to political and economic developments in the world in some places. In addition, the impact of the COVID-19 epidemic has affected the global supply chain, affecting the cryptocurrency market.

According to Glassnode data, investor interest in Bitcoin is faltering. Recently, the number of users and the flow of capital into the cryptocurrency market has been almost flat. Many short-term Bitcoin investors are inclined to sell.

Bitcoin was once considered a form of digital gold, but the movements of Bitcoin over the past 1-2 years make it more like a risk asset.

Bitcoin could plummet to $24,000

In the crypto community recently, one of the controversial topics has been the Bitcoin (BTC) halving cycle and its effect on the coin’s price.

Bitcoin price has not reached the level 100,000 USD was predicted at the end of 2021 and many crypto analysts have forecasted the future of this coin in the next 6-12 months.

The amount of Bitcoin miners receive in a block is halved every 4 years, a process called halving. Initially, the reward for each completed block was 50 BTC. By May 2020, after the 3rd halving, Bitcoin miners received only 6.25 BTC for each block they mined.

In the past, after each halving, the price of Bitcoin increased sharply. However, the forecast of the increase depends largely on the technical analysis method of each expert.

Currently Bitcoin price is trading below 40,000 USD. Various technical analysis indicators show that Bitcoin price is more likely to continue to decline rather than recover towards 40,000 – 45,000 USD as many people think.

“Wolves of Crypto”, crypto analyst on Twitter, makes comments regarding the 4-year cycle of Bitcoin. “Bitcoin will probably bottom in November-December 2022,” he said.

This forecast suggests that the price of BTC will peak 68,789 USD November 10, 2021 marked the last cycle high and the market is in a post-cycle top correction.

According to the information from the price movement indicator (SMA 200), Bitcoin price is likely to bottom out at the low 24,000 USD“.

If this pattern emerges, BTC price is likely to peak to all-time highs sometime around August-September 2023.

Meanwhile, market analyst Willy Woo thinks that the possibility of Bitcoin bottoming may come in 2022. “This is not a bad time for investors to wait for the law of average reversal,” said Mr. Woo. comment.

Some experts think this is a good time to accumulate Bitcoin. “Bitcoin is in a buy zone,” said crypto market analyst Philip Swift, adding that “market sentiment is stabilizing again, suggesting that Bitcoin price swings are at a reasonable level relative to the tempo. of the market”.

A previous Bitcoin cycle survey showed that the Bitcoin price also hit a low around the same time and continued to move higher in the weeks and months that followed.

Overall, Bitcoin’s price movement is in line with a 4-year cycle, although the percentage increase is less than expected, according to CoinTelegraph.

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