The total value of the cryptocurrency market fell 2.43% from the previous day to $1.76 trillion. Overall volume in the last 24 hours decreased 3.15% to $92.56 billion. According to CoinMarketCap data, Bitcoin (BTC) currently has a 42.69% market share, down 0.95% from the previous day. Regardless, whale purchases coming in at lower levels are positive news. However, analysts believe that $30,000 will open the door to new lows.
Analysts warn Bitcoin investors, 20% drop expected
Amount of Bitcoin held by “unique assets” with balance of at least 1,000 BTC or “whales” since September 2021, according to Glassnode data reached its highest levels. Interestingly, although the price of Bitcoin dropped from $43,000 to nearly $38,000 last week, the number has increased. GlobalBlock analyst Marcus Sotiriou considers the current rise in Bitcoin whale holdings an optimistic indicator, recalling a similar shift in September 2021 before the BTC price surged to the ATH level of $69,000 in November 2021:
Whales have had a significant impact on the market. This metric is an important metric to consider.
BTC price target is below 33 thousand dollars
As we have mentioned in the analysis of Kriptokoin.com, the price of Bitcoin is affected by the Fed’s rapid increase in interest rates and inflation. It fell from $69,000 in November last year to almost $40,000 in late April 2022, due to the decision to end the quantitative easing program to tackle the challenge. This drop was in line with comparable drops in the US stock market, with correlation to the tech-heavy Nasdaq Composite reaching 0.99 in mid-April. “Think of this enormous correlation as a gravitational field that drives the Bitcoin price,” Ecoinometrics analyst Nick explains. “If the Fed bombards the stock market into oblivion, don’t expect Bitcoin to avoid a serious crash,” he adds.
Technical indicators are compatible with depressing basic indicators. Notably, Bitcoin is breaking out of a “bear flag” pattern and is facing significant price losses in the coming months as the chart shows. The downside target for the bear flag is below $33,000. Meanwhile, Brett Sifling, financial advisor at Gerber Kawasaki Wealth & Investment Management, believes that a break below $30,000 could lead to a drop to $20,000.