Bitcoin Starts June with a Drop
We should start our forecast with the fact that according to the data by Coinmarketrate.com, after a short-term uptrend, the price of Bitcoin again fell by several percentage points, and within a few hours dropped below $30,320.
Source: Coinmarketrate.com
And so, after a longer consolidation phase on May 30, Bitcoin again broke the $30,00 mark, after which BTC even broke the $31,000 mark – for the first time since May 16.
The uptrend is not over yet, because the next day, the BTC even briefly rose to over $32,000. The last time the market saw this price was on May 11.
Investors expecting for a new rally were disappointed. Within a few hours, the asset fell back to below $30,000. Now the BTC is trading again at a level just below $29,900 and, thus, is close to the $30,000 mark.
Bitcoin’s dominance has now grown to 46.6 percent. In previous phases of the bear market, Bitcoin’s dominance usually exceeded 60 percent.
What can we expect from Bitcoin in June 2022?
Bitcoin has reached, according to trader Rekt Capital, “a weak monthly close below ~35,000.” Rekt Capital believes that:
“Technically, there is an opportunity for a relief movement in the direction of ~$35,000 to confirm a new resistance”.
The monthly close is below $35,000 for BTC. Source: Rekt Capital
Therefore, further bounces in the direction of $35k are possible. However, Rekt Capital believes that whatever the further movement, the weakening of support at the level of $29k is likely in the coming weeks.
What will be the next Bitcoin lows if this support at $29k is broken?
Crypto trader Tony says that “for almost two months now” he has been setting a goal in the area 22 000 – 24 000 dollars for BTC.
The growth of the last few days, which Crypto-Tony calls a “small pump”, does not change his forecast. The trader continues to adhere to the bearish mood, since, “zooming in”, he says that “nothing” has actually changed.
Technical analyst Blake also believes that Bitcoin does not always reach the bottom. He cites the weakness of stocks, which strongly correlate with the BTC, as the reason why he does not consider this time to be buying the bottom for cryptocurrencies and Bitcoin.
Summing up
With a capitalization exceeding $570.5 billion, Bitcoin remains the leading cryptocurrency with a dominant share of almost 46.6%. Its volatility determines the prices of all cryptocurrencies.
From the institutional side, this is still a good time for optimism, as evidenced by the following data: The International Summit on Financial Accessibility, organized by the government earlier in May. This meeting brought together bankers from 44 countries, mainly from North, South America and Africa, to discuss the Salvadoran experience of using Bitcoin.
Yes, Bitcoin is falling towards its previous resistance, which has become support. These are good support points, reliable. The price of Bitcoin is trying to recover after the collapse in the cryptocurrency market, because the price is changing very quickly. It is regularly subject to severe shocks, as evidenced by the past fall, and it seems to be a very risky asset. Since reaching record highs in November 2021, it has fallen by almost 60%. No expert can confidently predict the value of Bitcoin. Remember: in the past, the price of Bitcoin has already collapsed by more than 80% in one year.
All good things come to those who are waiting! Perhaps, but the bulls will have to wait some more time – from a few days to several months to see a bullish rally again. The rise above $32,000 was not enough to erase the alarming prospects of Bitcoin’s price returning to $22,000.
This article is not an individual investment recommendation.