After traders chose to stay put ahead of the FOMC meeting, the Federal Reserve indicated that it will continue its policy of raising interest rates. The market settled down into a holding pattern in May 25. Alternative.me data shows that the Fear and Greed Index is experiencing the longest period of extreme fear since the crash in Mach 2020.
Crypto Fear & Greed Index. Source: Alternative
Cointelegraph Markets Pro and TradingView data show that Bitcoin’s price action has been compressing into a narrower trading range. However, technical analysis indicators don’t provide much insight as to the direction of a breakout.
BTC/USDT 1-day chart. Source: TradingView
Here are some predictions from analysts about the future of Bitcoin prices.
As Bitcoin fights for $30,000, whales pile up
BTC/USDT 15-minute chart. Source: Twitter
Michael van de Poppe (market analyst) stated that #Bitcoin crossed $29.4K and moved towards the next resistance zone. We’ll reach $32.8K if we have $29.4K. Finally.”
It is interesting to see that, while fear is the dominant sentiment at these price points, Santiment, an on-chain intelligence company, pointed out that whale-pockets have used this opportunity to acquire well-priced BTC.
The Bitcoin price and its distribution Source: Santiment
“While #Bitcoin is still at $29.6K, the number of key whale addresses (holding 100-1000 $BTC) continues to rise after the huge dumping in January. In the past, we have seen a correlation between this tier’s price and its address quantity.
The price could drop to $22,500
The following chart was posted by Rekt Capital (a pseudonymous Twitter user) that shows how Bitcoin will perform following the appearance of a Death Cross. It is a macro view on how Bitcoin will perform following the appearance of cryptocurrencies.
BTC/USD 1-week chart. Source: Twitter
Rekt Capital said,
“$BTC will fall from the Macro Range Low support and continue its decline to complete -43% downside. The 200-Week MA at $22500 is confluent to the -43% mark.
Related: Scott Minerd claims that Bitcoin’s price will fall to $8K but technical analysis suggests otherwise
“A pivotal retest”
Caleb Franzen, an economist, touched on the importance of Bitcoin’s current price. He posted the following chart, which shows the long-term performance versus its weekly anchor volume-weighted mean price (AVWAP). Noting that “This is pivotal retest similar to the dynamics of March 2022.”
BTC/USD vs AVWAP 1-week Chart. Source: Twitter
A rebound in the weekly AVWAP could boost bullish probabilities from the COVID high. It would be a dramatic increase in bearish probabilities if it falls below it, which could foreshadow a retest the grey range, $13.8k-19.8k.
The total cryptocurrency market is now worth $1.265 trillion. Bitcoin’s dominance rate at 44.8%.
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