Bitcoin (BTC) attempted a recent breakout of the $32,000 range. After that, it has dropped significantly in the last 24 hours. BTC is holding on to the same narrow range seen for over a month. The leading cryptocurrency is changing hands at $29,535, down over 5% in the last 24 hours. However, there are also a few factors that will encourage a price increase in the short term. In contrast, technical indicators suggest that BTC could drop below $24,000 in the next few weeks. Analysts expect the coin to see an increase in selling pressure ahead of the US inflation data we will learn this week. Other factors against cryptocurrencies, such as increased regulatory scrutiny, will also mean more losses for BTC.
Leading analyst: Bitcoin will see these levels
Crypto analyst Smart Contracter evaluated BTC price. Accordingly, Bitcoin is trading in a bear flag pattern set to result in more losses. Additionally, Smart Contracter expects the leading cryptocurrency to make a new bottom below $24,000. However, the drop will represent a buying opportunity. Also, the analyst says that BTC’s recent price action is quite similar to 2018, when it was trading in a narrow range for several months. At that time, Bitcoin fell by 50% to $ 3,000.
Inflation and FED hitting cryptocurrencies
Considering that the FED raised interest rates back then, BTC is likely to behave similarly to 2018. Therefore, it is possible for BTC to deepen its decline with more rate hikes on the horizon. New US inflation data will be released this Friday. The announcement is likely to be the main factor in determining market sentiment in the coming weeks. After inflation fell slightly in April, traders will see if there will be further declines in prices. Data from MarketWatch says the overall forecast will be 8.2% year-on-year in May. A data lower than this forecast will be the driving force that will trigger the BTC rally. But the reverse will trigger an even more drastic drop in the markets.
VentureFounder: BTC price likely to hit $14,000
VentureFounder, a cryptocurrency analyst at CryptoQuant, also evaluated the BTC price. Accordingly, the analyst says that Bitcoin will bottom between $14,000 and $21,000 in the near future. Whether that will happen or not depends on whether BTC can continue to trade above $29,500. If Bitcoin drops to $20,000, it represents a 70% price correction from the all-time high recorded in November 2021. As reported by
Kriptokoin.com , we have 670 days until the next BTC halving. Halving cuts new issuance of the leading cryptocurrency in half. As such, it represents important moments for the crypto market. Currently, miners receive 6.25 BTC rewards per block. In 2024, BTC Blockchain is likely to experience a new halving event that will reduce miner rewards to 3,125 BTC. The new issuance of BTC will not be enough to meet the demand for Bitcoin. For this reason, halving events often mean bullish for Bitcoin. According to the expert, there is a possibility that Bitcoin will experience a rapid collapse between $14,000 and $21,000 and then start a new bull market as it approaches the halving event in 2024.
