Bitcoin Regains Momentum After Hitting Weekly Low at $33k

Current Crypto Market Sentiment

Over the last week, the crypto market experienced a $1,369 billion dip on Monday and a $1,787 billion rise on Wednesday. A rise in Bitcoin dominance was recorded at 47.06% high on Monday that fell to 42.67% low on Thursday.

Across the majors in the crypto market on Saturday, it was fairly a bearish day. Chainlink dipped by the highest-low at 8.98%, followed by Binance Coin at 7.27%, Cardano’s ADA at 7.24%, Ethereum slid by 5.49%, while Litecoin and Ripple’s XRP also struggled at 7.53% and 7.48%, respectively. Polkadot and Bitcoin Cash witnessed fairly modest falls with 4.05% and 0.14%, respectively. 

Bitcoin and the entire crypto market witnessed a bearish start during the last week. The BTC price experienced a 3.05% dip on Saturday and ended at $34,574. The following day turned bullish with a rise to an intra-day high of $37,381 till noon and, after that, driving backward. It recorded a new resistance level at $38,100 and fell back to an intra-day low of $33,617. Due to extended sell-off, Bitcoin reached $33,958, the new support level before it revisited $35,000 levels, making the end of the day rather bearish.  

Bitcoin Millionaires Accelerate Accumulation

Bitcoin, the most significant cryptocurrency, reported a substantial slump in the last 2-3 weeks as the BTC price reached as low as $31,000 last week. Nevertheless, crypto millionaires were unshaken by the latest drop, and hence, Bitcoin accumulation continued.

Santiment, one of the top cryptocurrency-tracking and analytics firms, tweeted their latest information about a significant uptick in BTC holdings. BTC addresses with 100 & 10,000 have accumulated around 30,000 BTC in the past week.

Worth mentioning, earlier in May, Bitcoin received waves of criticisms from Tesla’s CEO, Elon Musk, on the energy usage in BTC mining. This negative response was aggravated by China’s decision on the potential banning of crypto mining. Making the market bearish, these impacts have evidently decreased the value of cryptocurrency by over 40 percent in the past few weeks.

Santiment reported that approximately 16,000 Bitcoin addresses are holding over 9 million BTC. Over the past week, many firms have reported various transactions regarding Bitcoins. Whale Alert is another blockchain analytics firm confirming an upsurge in the Bitcoin transfers to crypto wallets. Especially, May 28 marked the highest movement of 1,964 BTC from coins to digital wallets, amounting to $70 million.

Will Bitcoin Regain its Lost Momentum?

The two trigger points – Mr. Musk’s response on Bitcoin mining followed by China’s decision on banning crypto services – added to the existing dangers like excessive price volatility, deficient regulatory protection, and increased risk from hackers.   

So, Should this Shake the Confidence of the Investors?

According to Laith Khalaf, a financial expert at AJ Bell, says that young BTC fans who are sensitive to these issues and also experienced investors may be a little shaken up.

Mr. Knacke, who is the head of Shard Capital, believes that the value of BTC will be positive. All it requires is a substantial correction for long-term exposure. Moreover, technical indicators like moving averages and resistance levels and an intensive study on technologies must be considered to comprehend the fundamental network utilities. 

According to Fawad Razaqzada, an analyst at Think Markets, the crypto market crash in May seems to have developed an incredible low of $34,000, and a bullish market is waiting for it to break through the $42,000 level. This would strongly indicate the creation of a low level. Century Financial’s chief investment officer, Vijay Valecha, said that this regulatory threat is not over. The top central banks are most likely to release more warnings relating to the risks involved in the crypto market. 

However, he adds, saying there is no need to avoid Bitcoins altogether but to invest with more caution. The undeniable fact is that the crypto market is likely to trend up and down because of BTC sentiment, but the long-term tokens that carry some utilities are probably the best options. Furthermore, to limit damage, our Bitcoin forecast recommends purchasing more on the lows instead of the highs since ‘‘volatility begets volatility”. 

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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