The crypto space appears to not have finished with the roller coaster ride as many crypto assets possess extreme volatility. Bitcoin price ranged high above $45K and Ethereum price was on the verge to smash $3000. But a quick flip dragged the price down which is now expected to discover more lows in the upcoming days. Yet some indicators point out towards a significant flip but the pattern suggests an extended bearish trend.
The BTC price trend is mainly dependent on the market participants, their interest over time matters a lot. If there is a loss of interest, the price tends to fall down, which further attracts many. Currently, a similar plunge is witnessed and hence it is expected that the BTC price may be negatively impacted. Therefore a substantial plunge is expected which may drag the price too as low as $33K very soon.
One of the analysts, mentions the possibility of the BTC price slashing to $33,000 and mentions the reason as a drop in the Entity Adjusted Dormancy Flow. This is the spending behaviour of the experienced market participants. As it is plunging, it indicates that the market participants are losing their interest in dealing with BTC. Yet after smashing the highs, the Dormancy Flow tend to hit the lower levels, dragging the price down.
However, when it rebounds firmly then the Bitcoin price receives a notable boost which goes parabolic to hit the ATH. Therefore, the asset may initially plunge further to hold the support and with a notable flip may reignite an uptrend to hit the highs. But currently, $33,000 may be the bearish target for Bitcoin price throughout the weekend.
Written by: Sahana Vibhute
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