Will Bitcoin (BTC) Price Hit Local Bottom At $22k By May End?
Bitcoin has now lost its value eight weeks in a row, setting a new record for the most consecutive losing weeks. Although, today, cryptocurrency prices soared, with Bitcoin surpassing the $30,000 milestone, before hitting reversal.
Near the $30,160 mark, there is immediate upside resistance. The next significant resistance level is at $30,600. A decisive break above the $30,600 resistance level could signal the start of a prolonged climb. In this scenario, the price may break through the $31,200 resistance zone.
Calm down ‘volatility’
In order for bitcoin’s price to establish a foothold at the bottom in the short term, according to Josh Olszewicz, head of research at investment management Valkyrie, volatility must calm down.
We may look at things like the 200-week moving average, which is around $22,000, according to him. On CoinDesk TV’s “First Mover” program, Olszewicz said,
“We can look at the realized price, which is the average price of coins that have moved on-chain, which is roughly $23,800.”
Other variables, like the US Federal Reserve boosting interest rates, are also influencing bitcoin’s market performance, according to Olszewicz. He speculated that institutional investors may be at the forefront of the downturn. The average size of on-chain transactions, according to Olszewicz, is in the tens of thousands of BTC.
Nonetheless, according to Olszewicz, traders continue to influence market movement more than institutional investors. Those learning about cryptocurrencies are now jumping in during this bear market to “test the waters” and “see if they can survive”.
“We’ve seen this rise and swell before, and as individuals again learn about bitcoin for the first time, the cycle could repeat. Since 2018, the average number of bitcoin-holding wallets has increased from over 27 million to more than 41 million today.” He added, “We’re seeing a lot of people not only staying here, but getting excited again about what’s going on in the space.”