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The most capitalized cryptocurrency Bitcoin (BTC) began another working week near the level of $ 30 thousand The coin has been at the designated height since the beginning of May 2022. The opinions of the participants of the crypto community about the direction in which BTC will continue to move diverged. The editors of BeInCrypto collected forecasts on bitcoin from members of the crypto community in one review
The Case for Growth
Many members of the crypto community believe that the current fall of bitcoin is a correction before the next phase of growth. For example, this opinion is shared by a trader who leads a microblog under the nickname JJcycle. A member of the crypto community illustrated his point of view with the help of a graph. Here’s what JJcycle emphasized:
- Bitcoin, in his opinion, completes the phase of sideways movement. This is indicated by the fact that the cryptocurrency “rested” on a curve that reflects the expected level of support. From the point of view of technical analysis, this position of BTC may be a harbinger of the imminent release of the cryptocurrency into growth.
- The phase of active growth of bitcoin may come in the second half of 2022. According to the forecast of JJcycle, the positive dynamics of the movement will help BTC break through the level of $ 200 thousand in late summer – early autumn of 2022.
A positive forecast is adhered to by an analyst who leads a microblog under the nickname BTCfuel. In his opinion, BTC will be able to grow in the near future. This is indicated by the results of the technical analysis of the cryptocurrency. BTCfuel drew attention to the fact that BTC often repeats previous patterns of movement. This time, the analyst saw on the chart of the coin an inverted version of the figure, which in November 2021 brought the cryptocurrency into a fall. Its appearance, BTCfuel is sure, indicates the growth potential of bitcoin.
Bitcoin chart from BTCfuel
The growth potential of bitcoin in the near future is also seen by an analyst who leads a microblog under the nickname Inmortal. In his opinion, the energy accumulated by the cryptocurrency will be enough to return to the previously lost level of support at an altitude of $ 38 thousand.
Bitcoin chart from Inmortal
Analyst Lark Davis, in turn, tried to explain the reasons for the fall of bitcoin. He noted that the cryptocurrency began to actively lose in price against the background of the incident with the TerraUSD (UST) stablecoin. Recall that in early May, the coin lost its peg to the US dollar. Despite the pressure of bitcoin, as noted by Lark Davis, continues to hold the key support level around $ 30 thousand. Lark Davis did not rule out a repeat of history.
Bitcoin chart from Lark Davis
The growth potential of BTC in the near future, in his opinion, is indicated by the formed divergence (divergence of the direction of movement) between the cryptocurrency rate and the relative trend strength indicator (RSI). The analyst drew attention to the fact that against the background of the formation of similar divergences, bitcoin was growing earlier.
Bitcoin chart from Lark Davis
More active than other members of the crypto community for the continuation of the fall of bitcoin is the blogger CryptoWhale. He believes that the market has plunged into the crypto winter, which means that new lows can be expected ahead of BTC.
One of the possible prerequisites for the further fall of bitcoin CryptoWhale called the decline in the capitalization of the stablecoin Tether (USDT). According to one of the theories that the analyst adheres to, the BTC rate largely depends on the speed of release of new “stablecoins” to the market. Allegedly, the new Tether is used to buy bitcoins. Therefore, the lower the speed of the “printing” of USDT, the lower the support of BTC from buyers. According to this logic, CryptoWhale suggested that the fall in tether’s capitalization is a harbinger of a decline in the bitcoin rate.
The capitalization of USDT in comparison with the movement of bitcoin. Source: CoinMarketCap
Despite the presence of a number of negative forecasts for bitcoin, market participants believe in the growth potential of the cryptocurrency. This is indicated by the gradual increase in the number of crypto wallets, the balance of which exceeds 1 BTC.
Number of wallets with a balance of more than 1 BTC. Source: lookintobitcoin
Many are confident that over the next five years they will see bitcoin for $ 500 thousand, this is indicated by the results of a survey by an analyst planB.
Recall, PlanB was confident that bitcoin will be able to break through the level of $ 100 thousand before the end of 2021. His prediction did not come true.
Let’s sum up
Many members of the crypto community see the growth potential of Bitcoin. At the same time, opinions about the prospects of BTC are divided. Some crypto investors believe that bitcoin is waiting new lows. At the same time, market participants noted that other crypto projects can also affect the “health” of BTC.
Earlier, the editors of BeInCrypto came to the conclusion that BTC will be able to reach the bottom as part of the movement after the halving of 2020 at the end of the summer of 2022.
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