Yesterday Bitcoin (BTC) once again faced an unfortunate episode when the greenish phase only lasted for a while before the market started to dilute their holdings. The total crypto market has lost $ 80 million in that unfortunate episode.
Bitcoin once again failed when its attempt to maintain the $ 32,000 range was unsuccessful. As a result, the BTC price has fallen significantly over the past 24 hours, a 5% drop to $ 29,539. But on the other hand, there are also several factors that encourage any price increase in the short term.
On the other hand, technical indicators suggest that BTC could slump below $ 24,000 in the next few weeks. BTC is expected to see increased selling pressure ahead of key U.S. inflation data. which will be released this week.
Other factors, such as increased regulatory oversight of the crypto market also have the potential to encourage sales and indirectly drive more losses for BTC.
According to a handful of crypto analysts including SmartContracter BTC is being traded on a ‘bearish’ structure, where trading patterns tend to drive more losses.
He added that the worst probability is that BTC could fall to the $ 24,000 level and at the same time it could be a purchase opportunity. Not only that, BTC is also likely to behave in a similar pattern to 2018 with the Fed raising rates before the end of 2022. More rate hikes are expected to weaken crypto buying.
U.S. inflation data for May, scheduled for this Friday, is expected to play a core role in determining market sentiment in the coming weeks.
