Is the worst behind us? No, BTC will drop to $25,000!
Can we consider this rebound above $32,000 as a trend reversal? It’s too early to judge, Bitcoin has every chance of dropping to $25,000! Find out what BTCNEXT analysts think about the current market situation!
19–31 May main events
- Terra 2.0 mainnet launch. On May 28th, the Terra 2.0 main network was launched with the identifier Phoenix-1. LUNA airdrop participants have received new tokens. Bybit became the first exchange to list the asset. The price initially soared from $0.50 to $30, before significantly sinking back down again.
- Coinbase executives sell $1.2 billion worth of shares. Coinbase’s co-founders Brian Armstrong and Fred Ehrsam, along with top managers Emily Choi and Surojit Chatterjee, sold a total of $1.2 billion worth of shares between the IPO and February of this year.
- Bitcoin mining difficulty drops by 4.3%. On May 25th, as a result of another recalculation, the difficulty of BTC mining dropped to 29.9 T. The decrease in the indicator is the highest since July 2021.
The weekly candle closed at $29,468 and the Bitcoin price managed to stay above the important support. Last week, the buying/selling delta turned out to be neutral (-$56.5 million). Buyers are actively holding BTC above 2021’s lows. Within a few days, BTC rose above $30,000 and tested the $32,000 mark.
It is too early to talk about the resumption of growth, the price may well rise above $35,000 as part of a rebound. To continue growing, it is necessary to break through the downtrend and consolidate above $35,000. If the price falls below $30,000, the level of $25,000 will most likely be tested. The global trend remains downwards.
The Fear and Greed Index is at 17 points in the extreme fear zone. The funding rate is positive (0.01%). The ratio of long and short positions is almost the same. Open interest continues to decline and is now at $15.5 billion.
The current behavior of Bitcoin indicates a short-term rebound as part of a global corrective movement. At least one more low is expected. Retesting the level of $35,000 without a foothold above this does not signal a trend reversal. If we see a decline, the fall can be stopped at around $25,000, but if there is no reaction from buyers at these levels, the decline will continue to $20,000. Any profitable altcoins should be sold in the current situation and investors should wait for global signals.
That’s all! If you want to continue receiving price analyses — stay tuned for more BTCNEXT updates!
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