Bitcoin Is Down: Are You Expecting a BTC Miracle Again?
In the declining crypto market, Bitcoin is defending the support level of $30,000. There is no sign of a miracle price surge, but analysts observe range-bound upside momentum with possibilities of a downtrend.
Bitcoin managed to show strength in its price this week. If it continues, we can find a short-term recovery in price. The worldwide market regulations and inflation are pushing the BTC price down.
It also allows the bear market to bounce back and monitor the scenario because most investors are not confident about the upside bounce. They are expecting the breakdown of the previous bottom of $23,800 this year, especially after the crash of Terra.
Besides that, one must argue about the consensus of Bitcoin because it runs on a Proof-of-Work algorithm, which is not environmentally friendly. Many prominent cryptocurrencies are switching to Proof-of-Stake consensus, which saves energy and the cost of mining.
Miner production cost determines their ongoing activity, and it is currently around $26000, which can cause a larger shift of algorithm to maintain the profitability of this blockchain. Hashrate has been increasing, and it came to the all-time high of an estimated 233 EH/s on May 23. On the other hand, the hashrate increased, while the Bitcoin price dropped significantly in the last year.
Now many analysts question the fundamentals of this cryptocurrency while the market remains cold due to various other reasons. Check BTC predictions to know whether the price of Bitcoin will plunge or rise.
At the time of writing, BTC was trading around $30K. On the daily chart, it has taken short-term support at around $29,700. BTC is consolidating around this level, and the previous support level of $37K will work as a strong resistance level for this coin.
Indeed, it is showing a sign of recovery with higher trading volume. MACD line and RSI are bullish, along with the Bollinger Bands. There are green histograms on the MACD indicator with the BTC price around the baseline of the Bollinger Bands.
BTC has been consolidating between $40K and $37K in the last month. Due to inflation and the US Fed interest rate hike, cryptocurrencies became a victim. Thus, the BTC price falls drastically.
Now many analysts think it may come down to $9K. However, the long-term analysis does not reflect any such view. Though it has been forming lower highs, it has taken support around the historical support level of May 2021.
Most of the technical indicators are bearish in the weekly chart. MACD forms red histograms with bearish signals; RSI is around 34 and can be considered in a bearish grip. Bollinger Bands also shows bearishness because weekly candlestick may break the lower band.
However, we think it is the ideal time to start accumulating Bitcoin because it has great potential in the future, and it provides a huge return to the investor in the long run.