Leading cryptocurrency Bitcoin (BTC) is showing signs of recovery after falling nearly 10% in the past 7 days. Over the past 24 hours, it has grown by 1.6%.
What do analysts think about Bitcoin’s price movement?
Looking at the BTC / USD chart, it seems that the danger point is actually $ 34,000 and $ 32,000.
$ 37,500 for the decline in Bitcoin from $ 44,000 seems critical. Filbfilb, a renowned cryptocurrency analyst and co-founder of Decentrader, noted that the markets are in turmoil. However, Filbfilb stated that the 20 WMA level is in fact the main indicator that will decide whether the market is bullish or bearish.
Bullish or Bearish factor determining BTC
According to a chart published by Decentrader analyst, 20 WMA points to $ 48,625 for BTC / USD, and as long as it stays above that value, there is nothing to fear. BTC price is much lower than this at the moment and is resisting not falling below the weekly support of $ 32,000. While Filbfilb believes the bull is reviving, this will not be fully confirmed until the $ 48,000 resistance is overcome.
Looking at the Filbfilb chart, one can single out $ 37,500 as a very critical resistance. It is imperative for BTC to return $ 37,500 to avoid retesting weekly support, he said.
Continuing this, the $ 40,000 and $ 45,000 levels are important. If the $ 48,000 level is not hit in the next few months, the $ 32,000 support could be lost and fall below the $ 30,000 range. Filbfilb noted that the $ 20,000 minimum is the expected decline.
Worst-case scenario for Bitcoin
Stating that he expects a 78% withdrawal from the peak, the analyst said that this would end with a $ 20,000 decline.
According to the well-known analyst, the price movement next week is more important than ever. Staying above $ 37,500 will actually signal that bullish gains may continue. The analyst, who also published the Ethereum analysis, said that if the $ 2300 remains higher, the individual bull will continue. Although he noted that the growth of Ethereum will also be highly dependent on the strength of Bitcoin.
At the same time, analysts note that the current drop could greatly accelerate the price of BTC, as happened after the collapse in March last year.
Falling of Bitcoin hashrate
For most of May, the hashrate of the Bitcoin network shows negative dynamics.
According to the results of the last recalculation, the difficulty of mining the first cryptocurrency decreased to 21.05 T. The BTC.com service predicts a drop in the indicator by almost 16% more – to 17.72 T.
Compared to the record level reached on May 13, mining difficulty has decreased by 16%.
The drop in the hash rate began a week before the news of China’s intention to take tough measures against the mining and trading of cryptocurrencies appeared.