The price of Bitcoin is likely to disappoint investors in the next two weeks. According to several trading experts, the cryptocurrency is likely to collapse around $30,000 by the end of the month.
After a sharp rise at the gates of $50,000, Bitcoin started to fall again at the beginning of April 2022. The price of the queen of cryptocurrencies slipped below $45,000. In the following days, Satoshi Nakamoto’s digital currency then contracted below the $40,000 threshold.
Among the factors behind this new drop are the publication of the minutes of the US Federal Reserve, which forecasts an increase in interest rates, the stalemate of the war in Ukraine and a rather tense general economic context. Inflation causes a sharp rise in the price of goods and services, which reduces the inflow of capital to riskier assets.
Bitcoin is about to fall
Under these conditions, several traders estimate that Bitcoin could return to the 30,000 threshold dollars by the end of April. Crypto Ed, a popular trader on Twitter and YouTube, expects the price to crash sharply in the next two weeks.
To arrive at this prophecy, the trader relied on the technical analysis of the Bitcoin price. In particular, he applied the Elliott Wave theory, which makes it possible to see phases of sudden rise or fall coming. Note that chartist analysis has its limitations. It is impossible to predict an event that could propel the price up or down.
Unsurprisingly, the prophesied sharp drop does not call the fate of cryptocurrency into question. Most experts in the finance and investment industry believe that the price of Bitcoin will continue to grow in the coming years. While some believe that a Bitcoin will be worth around $100,000 by the end of 2022, others go so far as to estimate that a BTC will trade for $100 million in 2030.
Currently, the Bitcoin price stagnates around 40,000 dollars. “For now, Bitcoin remains closely correlated with the Nasdaq 100 index. The Nasdaq 100 is down about 15% this year, while Bitcoin is down some 16%”, underlines the journalist Colin Wu on Twitter. Bitcoin still needs to earn its safe haven status to establish itself as a serious alternative to gold.