The crypto market does not stop falling. Bitcoin is breathing higher, but only very slightly, so more losses are likely to come, and to find out how low it could drop, we run a weekly forecast below.
At the time of this writing, BTC is trading at $35,329.52, accumulating a gain of 1.34% in the last 24 hours, but maintaining a loss of 18.26% in the last 7 days.
As I commented in a recent publication, the fall this time is being sponsored by the largest investors, as they begin to reduce their appetite for risk, due to economic uncertainty mainly in the United States.
Investors are waiting for a possible progressive increase in interest rates by the FED. This will undoubtedly negatively affect risk assets.
In addition, the possibility that regulations against cryptocurrencies increase, generates even more fear among crypto asset investors.
However, crypto market enthusiasts remain solid in their long-term bullish view, with few believing that the bull rally is over. The growth of the Metaverse, the possible approval of new ETFs and the scarcity of BTC are some of the reasons why analysts think that there is still a way to go up.
But what can we expect in the short term? Let’s find out below.
Bitcoin Weekly Forecast
In the daily BTC vs USDT chart we can see a very clear bearish scenario in the short term, due to the increasingly lower lows and highs.
Right now the ground for the bears is clear to $32,000 at the earliest, so it is quite likely that we will see further losses in the coming week.
Yesterday the price of Bitcoin managed to slow down the speed of the decline a bit, but in this weekly forecast it seems that the selling could accelerate again in the next few hours.
While the short-term momentum is quite extended, BTC has yet to find support. Once it hits 32k then we could expect a rally.
The defining support
With this weekly forecast it is clear to us that gray days are coming for Bitcoin; however, we cannot yet guarantee that we have entered a bear market.
Right now the losses should extend further, which would take the price to the most relevant support zone currently, around $30,500.
This support level is the closest structural point of the long-term trend. Losing it would mean the possibility that the bull market is over, or that the correction could extend quite a bit longer.
For now this level of support is not in danger. The long-term bullish force is incredibly dominant, and it could well come to the fore when the price falls towards that price level.
Right now there is nothing left to do but wait and monitor the behavior of Bitcoin during the expected fall.
Is the bull run over? Or, on the contrary, are we close to the bottom? Leave us a comment to know your vision!
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