Bitcoin Weekly News: Is the BTC Sell-Off Finally Over?

The last week’s Bitcoin weekly news highlighted that the traders were reluctant to open a trade because Bitcoin was trading in the danger zone. It was also discussed that Bitcoin would most probably break out of the triangular pattern because the selling pressure was too high. On Thursday, the price broke below the triangular pattern and ended up hitting the two-month low on Friday.

However, the price quickly recovered and re-entered the two months old range. The interesting part is that the volume didn’t increase even during Friday’s price volatility. So, there’s still a mixed sentiment about the Bitcoin price movement. The following Bitcoin news may give an idea of how Bitcoin’s price may perform over the coming days.

Hopeful Signs for Bitcoin at $27,000

Bitcoin lost its value by more than 10% since May 5. The price drop was triggered by various factors including macroeconomic uncertainties. A number of traders booked profits to avoid the losses. Although the price broke below $27,000, it recovered quickly. And for the past few days, the price respected this level.

Therefore, some traders think that the price will rebound from this range. The experts are also considering the correlation between Bitcoin and traditional financial assets to predict the upcoming price movement of Bitcoin. Traditional financial assets are failing to maintain the investor’s trust. And they’re investing their funds into Bitcoin and other cryptocurrencies to hedge against inflation.

Good News for Bitcoin Holders

According to Glassnode, more investors are now taking advantage of the Bitcoin price drop as there are now more than one million wallet addresses holding more than 1 BTC. Bitcoin’s price significantly dropped during the last year. And most investors added their funds into this asset considering it an opportunity for future growth.

However, most investors were waiting for the $10,000-$12,000 range. And they got disappointed when Bitcoin’s price started recovering before even touching those levels. These investors are now adding more BTC to their wallets to join the next bullish rally.

The increasing number of BTC holders suggests that the buyers are still confident about Bitcoin’s price increase. Glassnode has predicted that Bitcoin’s price will eventually hit the $35,000 level in the mid-term. But some analysts that the increasing number of BTC holders may be a trap by the whales because one user can hold multiple wallet addresses.

So, it’s quite possible that the whales are transferring their funds into different wallet addresses to convince the retail investors that Bitcoin still has the potential to go higher. Therefore, investors must consider other factors before taking a position.

Bitcoin Price Prediction by Cezary Graf

Cezary Graf, the renowned investment analyst, has shared the wildest analysis about Bitcoin price. While most analysts are expecting a new all-time high, Cezary has predicted that Bitcoin’s price may drop to $2,700 and even $2.7. Graf has been offering consultation services and investment webinars for years.

Graf has shared this Doomsday prediction following Binance and Tether’s significant impact on Bitcoin’s price. Graf says that Bitcoin’s price could crash swiftly if any of these companies failed. In such a situation, the price may even reach levels that aren’t seen in a decade.

But it’s worth noting that many anti-crypto commentators have made such comments in the past. So, the investors shouldn’t get too much worried about it. However, they should carefully manage their investments to be prepared to deal with such situations.

Bitcoin Weekly Update by Paul Tudor Jones

Paul Tudor Jones, the Billionaire hedge fund manager, says that the US has an unfriendly regulatory environment for Bitcoin. Similarly, a few indicators suggest that inflation will reduce over the coming weeks. It will eventually affect Bitcoin’s reputation in the United States. He described that the US regulatory apparatus isn’t favorable for Bitcoin.

It’s worth noting that Jones was using Bitcoin as a hedge against inflation before October 2022. However, he now thinks that Fed will be able to control inflation over time. Therefore, he thinks that holding cash might be a better option in this situation.

Lower Interest Rates May be Beneficial for Bitcoin

There’s a sentiment among most people that Bitcoin’s price increased due to rising interest rates. But a few analysts have claimed that the lower interest rates may also benefit Bitcoin. A vast majority of people have learned about the benefits of Bitcoin during the times of crises. So, even if the Federal Reserve reduces interest rates, the investors will continue investing in Bitcoin to prepare for future events.

Bitcoin Weekly Technical Analysis

Bitcoin’s price broke out of the triangular pattern that was highlighted last week. However, it was discussed last week that the selling pressure may break the pattern displayed on the chart. In the current scenario, Bitcoin has taken support from its two-month old support. And it may again struggle here for a few days.

If Bitcoin failed to break resistance, it will break this two-month old support. However, most analysts think that it will find the next support near $24,500-$25,300 range. The negative trend will be confirmed if the daily closed below the two-month old support levels.

Conclusion

Bitcoin’s recent price drop triggered by macroeconomic uncertainties resulted in a drop in value by over 10% since May 5. The price broke out of the triangular pattern on Thursday and hit a two-month low on Friday. However, the price quickly recovered, and for the past few days, the price has respected the $27,000 level.

The analysts still have a mixed view about Bitcoin because it hasn’t confirmed its direction so far. Therefore, the investors must manage their positions wisely. If you need regular updates about Bitcoin and crypto market, feel free to subscribe to our weekly newsletter.