Bitcoin (BTC) and the crypto markets are still struggling for any upside. While some have not yet given up hope that the bull run will continue, analysts are now warning of further price setbacks. One of them even sees Bitcoin dropping to $16,000. Can BTC still recover in 2022?
Bitcoin, quo vadis? Analysts are upset.
Photo: panthermedia.net/grafvision (YAYMicro)
Whither goest thou, Bitcoin? For weeks, the cryptocurrency number 1 by market capitalization has been trading in a narrow range, leaving traders and industry observers at a loss: A clear trend is not discernible, the digital asset can only hold profits for a short time – investors are still fearful.
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At the same time, many have not yet given up hope for a new rally, waiting for the explosive surge that will catapult Bitcoin to its all-time high and breathe new life into the markets. It remains to be seen whether that will happen. Bitcoin is currently trading at $29,842 following losing 5.52% in the last 24 hours and is thus back below the critical $30k mark.
Bullish forecasts for Bitcoin are scarce
From here, a drop towards $20,000 seems more likely than a move to new highs. Overall, the crypto market cap has lost a whopping 5.15% since yesterday, and is now at $1.23 trillion. Many altcoins are trading well below their all-time highs, some trading 90% or more below. Cardano (ADA), for example, the sixth cryptocurrency by market capitalization, has retreated 81%, while Ethereum competitor Solana (SOL) is down almost 85%. Bullish forecasts are currently in short supply, also for the key cryptocurrency BTC. Most chart experts even warn of further price setbacks – such as the much-cited CryptoKaleo, one of the most popular traders in the community.
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Intense losses in Bitcoin conceivable
In a new analysis, he looks at Bitcoin’s prospects for the rest of the year – and envisages intense losses. In the short term, according to Bitcoin Kaleo, Bitcoin might tackle the area around $36,000 once more and even visit the low 40,000s. The bullish price action is expected to be temporary, however: The expert shows his more than 512,000 Twitter followers a chart on which BTC trades around $30,000 until September, but then drops sharply and falls to as low as $16,000. “Basically, I still expect something like this to happen in the next six to nine months,” says the chart guru.
Basically still expect something like this to play out over the next 6 – 9 monthshttps://t.co/UYmyOXG2WP
— K A L E O (@CryptoKaleo) May 30, 2022
The course he has outlined suggests: Only following this capitulation event will the number 1 cryptocurrency recover and rise parabolically – to $40,000 and more.
Blockchain researchers observe strong accumulation
The scientists from Glassnode, the leading blockchain data provider, also observe a positive aspect. Accordingly, long-term Bitcoin investors are currently showing strong accumulation behavior. “Following the early May sell-off, a notable shift in accumulation trends is underway,” Glassnode said in its latest weekly report.
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While the Bitcoin HODLer class is the only one left following the Terra LUNA debacle, there is little sign of interest in Bitcoin outside of this group. However, its accumulation behavior suggests that it has been topping up its BTC holdings following prices fell below $30k. In short: The recent crash on the crypto markets makes new investors hesitate. However, anyone who believes in the long-term success of BTC sees the correction as an opportunity and invests at these prices.