After months of closing on a bullish outlook, the Bitcoin market is now on the verge of experiencing its first bearish trend this year. The Bitcoin price dropped by approximately 10 percent, hovering around $26.5k, just a few days before the end of May. Despite the bearish sentiment, Bitcoin volatility has remained relatively calm as the weekend approaches.
Potential Upside Move For Bitcoin
The smart money has taken a cautious stance, refraining from active participation due to the sheer probability of Bitcoin making a surprise upward move and liquidating short traders. Additionally, there has been a significant increase in the number of Bitcoin holders over the past year, driven by the anticipation of a bull market triggered by next year’s halving event.
Analyst Predicts Price Drop Before Bitcoin’s Relief Rally
A popular social media analyst with over 75k followers on Twitter and 285k YouTube subscribers has predicted that the price of Bitcoin is poised for one more drop before continuing with the relief rally of the new year. The analyst highlights the rising United States dollar index (TVC: DXY) in the past three weeks, finding solid support around 101.
U.S. Dollar Index Faces Resistance
However, the U.S. dollar index faces significant weekly resistance in the next 1.3 basis points, which the analyst believes will provide Bitcoin bulls with a chance to recover. In a YouTube video, Pizzino suggests that the Bitcoin price could drop to around the $24k area before experiencing a strong rebound.
Notably, the analyst insists that Bitcoin price is unlikely to revisit the $15k levels during the upcoming pullback. Pizzino highlights the presence of more buyers than sellers in the Bitcoin market, providing further support for a potential recovery.