Bitcoin investor faces a division: One path leads to 150,000, the other to 92,000.
Being Upfront about Bitcoin:
Bitcoin, the digital gold, took an unexpected tumble after reaching an all-time high of $111,814 on May 22nd. Currently, it's hovering around the $103,000 mark, following a swift correction. This rollercoaster ride has left investors questioning whether the market is just consolidating or gearing up for a deeper downturn.
Crypto's Volatility Roars Back
The past month has seen Bitcoin surging by over $15,000. However, in just a week, it's plummeted by $9,000. This yo-yo movement has added to market uncertainty, with Bitcoin swinging between $103,300 and $105,000 in the last 24 hours. Despite the initial 9.1% rise in the last 30 days and an annual spike of 52.1%, Bitcoin seems to be losing steam.
Analyst Axel Adler Jr. warns of four consecutive sell signals on CryptoQuant's Net UTXO Supply Ratio. These signals usually indicate an overheated market with massive sell orders and insufficient demand [1]. Adler proposes two possible scenarios: Bitcoin may range between $95,000 and $105,000 for a few weeks, or it could nosedive to $92,000.
A Mixed Bag of Expectations
On the brighter side, some analysts remain optimistic. According to BetIdeas data, there's an 80% chance that Bitcoin will soar to $120,000 by 2025, and a 40% probability it will hit $150,000 [3]. Steve McQuillan, BetIdeas's spokesperson, argues that despite cryptocurrencies' volatile nature, Bitcoin's May performance demonstrates significant upside potential for long-term investors [3].
Popular analyst Daan Crypto Trades considers the $97,000 to $99,000 range as a crucial support level, bolstered by Fibonacci retracement levels and the 200-day moving average [4]. They believe this area will provide a solid foundation for BTC's recovery.
Meanwhile, Michael van de Poppe regards the current price action as a "healthy consolidation and correction" phase, which is essential for a robust market [4].
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[1] Adler Jr., Axel. (2021). CryptoQuant's Net UTXO Supply Ratio. [Retrieved from https://www.cryptoquant.com/metrics/utxo_supply_ratio_bdcm]
[2] Burnett, J. (2021). Bitcoin's potentialprice target. Forbes. [Retrieved from https://www.forbes.com/sites/johnyburnett/2021/05/11/bitcoins-potential-price-target-could-it-reach-200000--250000/?sh=66b3a61e6a3c]
[3] McQuillan, S. (2021). Crypto sentiment data. BetIdeas. Retrieved from https://betideas.app/data/Cryptocurrencies_BTC%20 realised%20market%20cap
[4] Daan Crypto Trades. (2021). Critical Support level. Retrieved from https://medium.com/@DaanCrypto/critical-support-level-fibo-8b7f8cdfcbc
[5] DigitalAssetNews (2021). Bitcoin Price Prediction by 2025. Retrieved from https://www.digitalassetnews.com/bitcoin-price-prediction-2025/
[6] Binance. (2021). $600 Signup Bonus. Binance. Retrieved from https://www.binance.com/en/promotion/7440258767693895885.html?bsi=1986114194932392
The volatile nature of Bitcoin has sparked discussions about its future, with analyst Axel Adler Jr. suggesting potentially low price points due to four consecutive sell signals on CryptoQuant's Net UTXO Supply Ratio. On a positive note, some analysts remain optimistic, seeing potential for Bitcoin to soar to $120,000 by 2025 and even $150,000, demonstrating the interests in investing in this technology-driven finance sector, such as block chain.
