The Bitcoin price bounced off the resistance at $38,000. Are we seeing another drop towards $30,000? Or can Bitcoin recover soon and climb back above $40,000 in a bull run? In this Bitcoin price prediction article, we’re going to analyze Bitcoin prices and lay out 2 potential scenarios that might happen.
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Bitcoin Price Retraces from $38,000
The Bitcoin price tried to get into an important support zone in the last few days. After its most recent crash, when the price fell below $35,000 from $43,000, $BTC stabilized slightly. In the last few days, the price has climbed back above $38,000.
Had the price held there or continued to rise, it would have entered a key support zone between $38,000 and $43,000. On the other hand, Bitcoin prices retraced from that key resistance level of $38,000. Currently, prices are around $37,200 and down by -2.4%.
Bitcoin Price continues to be heavily influenced by Monetary Policy
The fear in the market persists. Due to the announced increases in key interest rates at the American central bank, the FED, there is great concern that Bitcoin as an asset could continue to lose its value. In addition, cryptocurrencies recently fell at the same time as tech stocks in America.
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With a high hash rate and increasing mining difficulty, the Bitcoin network remains fundamentally strong. According to analytical data, the Bitcoin price is currently much lower than the key data of the network suggests. Bitcoin is still considered “oversold”. In a previous article, we highlighted the similarities of the price-action between Bitcoin and the US equity markets. With today’s open markets, Bitcoin’s traded volumes are expected to increase in tandem with the open of the US markets.
Missed $BTC Breakout – Another CRASH Upcoming?
Stronger fundamental data does not necessarily mean that Bitcoin will rise again in the medium term. In recent months, cryptocurrencies became increasingly susceptible to negative developments in the financial markets that are affecting prices.
A drop to $30,000 still seems possible as a number of options contracts remain open in the Bitcoin derivatives market. A massive sale of these contracts could mean another heavy loss. However, investors could also bet on bullish times. The next few weeks will be very busy for the crypto community!
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