Bitcoin Seen Dropping To $32K – But Not This Month


Bitcoin (BTC) price failed to break the $40K barrier, indicating that confidence in the cryptocurrency market remains sluggish.

BTC has been dropping for more than a month. If it drops below $38,000, it could drop to $32,000. While the cryptocurrency market is trending lower now, another crash is unlikely, at least until the conclusion of the FOMC meeting.

The enthusiasm of cryptocurrency market traders continues to erode as a result of the prolonged market downturn and geopolitical uncertainty. Veteran trader Peter Brandt expects the price of Bitcoin (BTC) to test below $32,000.

Suggest reading | Will Bitcoin Reach More Than $40K – Or Will It Drop To $35,000?

Brandt stated in a tweet that Bitcoin has completed a downtrend, dropping below $38,000 in the last 24 hours. He expects a $32,000 test in the near future. However, his estimate of $28,000 is worrying about Bitcoin.

In addition, the on-chain data does not bode well for Bitcoin, as profit transactions are on the rise. This indicates that profit booking may occur at higher levels.

Analysts Remain Optimistic About Bitcoin, Despite Tensions

Despite ongoing concerns about the significant correlation between the crypto market and stocks, analysts remain bullish on cryptocurrencies.

According to market expert and partner VC Placeholder Chris Burniske, Bitcoin and Ethereum have dominated the stock market for years and will continue to do so.

Burniske said in a tweet that the cryptocurrency market “has held up well” compared to high-growth stocks. While BTC and ETH have lost nearly 40% of their all-time highs, many high-growth stocks have fallen between 60% and 80%.

BTC total market cap at $731.78 billion on the daily chart | Source: TradingView.com

According to on-chain data from the Analytics platform Santiment, it appears that traders’ confidence in Bitcoin’s recovery to the $40K level is waning. BTC and ETH profit/loss trade ratio data shows an amazing 12.5 to 1 profit to loss trade ratio.

Thus, the probability of Bitcoin sliding below $32,000 appears high as confidence continues to erode and whale purchases remain low.

Suggest reading | Bitcoin briefly tops $40,000 as more countries adopt cryptocurrency

BTC at $48,000 in May

Meanwhile, while the future performance of any asset cannot be predicted, Alex Kopetsekevich, chief market analyst at FxPro, expects bitcoin to trade between $32,000 and $48,000 by the end of this month.

May is a relatively successful month for Bitcoin in terms of seasonality. Bitcoin has finished the month above seven and four times over the past 11 years,” Kuptsikevich.

Kuptsikevich stated that he made this projection based on an average crypto gain of 27% and an average loss of 16% in May, against an overall gain of around 11%.

As of Tuesday evening, Bitcoin is trading at around $38,528 per coin, according to CoinGecko data.

Featured image from Pixabay, chart from TradingView.com



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