The value of Bitcoin has decreased by 1% every day over the last month, according to Glassnode. Experts from that blockchain analytics firm agree that demand might continue to experience headwinds.
Bitcoin (BTC) has not reached above the USD 30,000 band for over ten days as its minimum price has risen. Despite demand, that behavior proves to be insufficient for making its value increase, and there could even be another drop soon.
The price of Bitcoin has temporarily achieved stability between the USD 29,000 and USD 30,000 bands. That reflects the consolidation of the market after the sell-off following the collapse of LUNA and UST. Over two weeks ago, that event caused BTC to drop to USD 25,500, a low not seen since 2020.
However, the support of BTC at USD 29,000 could crumble if demand failed to become stronger to reach above its set prices. Financial analyst B. Ali predicted that the value of Bitcoin would drop if it did not break the USD 30,600 resistance level.
The expert showed that a triangle pointing to the right had formed for over two weeks. In other words, the price of Bitcoin has increasingly small lows and highs, showing weakness in supply and demand.
Specialists Think that the Price of Bitcoin Will Drop Soon
Bitcoin not reaching above USD 30,000 could lead demand to lose even more strength and its price to drop. In that regard, B. Ali expects the bulls to take a firm position at support close to USD 28,500 in the short term.
According to a recent report from Glassnode, demand for Bitcoin might continue to experience headwinds. For that reason, there could be lower prices soon, in tune with its latest behavior.
Besides being to the downside for eight weeks, Bitcoin has also lost 1% of its value daily for a month. The study points out that this behavior with that mediocre monthly returns is relatively infrequent.
The head of investment research at Valkyrie said this bearish movement of Bitcoin will bottom out in the third or fourth quarter of 2022. Many specialists do not find that strange and warn that the price of BTC usually pulls back before continuing its bullish trend.
There Are Further Long-Term Bullish Predictions for Bitcoin
According to cryptocurrency analyst Benjamin Cowen, pullbacks have been less severe each time than previous moves and bearish markets. The first was 94%, the second 87%, the third 84%, and the current one around 60%, falling from almost USD 69,000 to USD 25,000.
However, he added that the market would change if Bitcoin dropped by over 84%. Jeffrey Ross, the managing director of Vailshire Capital, agrees with him in maintaining a long-term bullish view as its global interest grows.
The two experts acknowledged that this is the first time the economic decisions of the US Federal Reserve have impacted Bitcoin. They thus understand that its influence could prolong the recovery of BTC as the market maintains a risk aversion appetite.
Ross said that the price of Bitcoin could drop to USD 15,000 in a strong bearish market. However, he concluded that many people would back the truck to buy as much as possible.
By Alexander Salazar
