The cryptocurrency market is currently seeing a substantial decline as the overall markets continue to consolidate. Long-term holders appear to be confident, but panic sellers are making matters worse by offloading cryptocurrencies at a loss. Traders anticipate Bitcoin to revert to levels below $20,000 now that it appears to be headed for a drop to $25,000 in price.
Market participants have remained in a state of intense dread ever since the Terra ecosystem collapsed back in May 2022, which later caused a number of fallouts. The first few weeks of the year saw a sigh of relief from the tokens as the bulk of them dramatically recovered. Unfortunately, the volume dried up at the start of the second quarter, reducing volatility to its lowest levels.
As a result, the traders who have been waiting for a significant surge towards $30,000 up until now seem to still be sceptical and have started to liquidate their crypto holdings at a loss.
According to data from Santiment, more cryptocurrencies have been purchased in the underbought area, where there are few opportunities to do so. Due to the restless addresses' continuous loss-making dumps on Bitcoin and other assets, the traders now look to be boring. The MVRV model shows that alternative currencies are flashing underbought signals throughout the market.
The market attitudes have returned to "fear" now that the cryptocurrency markets have started to trade slowly. As a result of a negative pullback in the net realised profit/loss (NUPL), the emotion has changed from "optimism/anxiety" to "hope/fear."
As the cryptocurrency markets consolidate inside constrained regions, market participants as a whole have once more grown fearful. The altcoins have been suffering greatly, while the price of Bitcoin (BTC) is currently hovering just above $26,000. This suggests that a stronger bearish trend may be on the horizon in the days to come. As per many analyst, if factors like a prolonged bear run this could knock the minimum bitcoin price down to $23,218.00.
Will Bitcoin Recover?
After the occurrence, the market is likely to experience upheaval and instability. By halving the supply, there will be less of it available, raising the likelihood of price growth. As a result, there may be additional chances for traders and investors as the cryptocurrency market may experience a huge upswing.
Price estimates for 2024 range from a high of $74,967.47 to a low of $39,453.57, with an average price of roughly $57,743.23.
Reference - https://coinpedia.org/price-prediction/bitcoin-price-prediction/
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