A bullish case isn’t on many people’s minds – but signs are cropping up that Bitcoin may indeed be headed for a trend reversal. Here are some signs explaining why BTC might be overdue for a renewed uptick.
Bitcoin reached its all-time high of almost $65K on April 14, 2021, a little over a month ago. However, over the past 10 days the price violently broke down from the $50K mark and even reached $30K last Wednesday.
Bearish sentiment affected the whole crypto market, as altcoins suffered even more: ETH, which saw its all-time high of $4400 just 11 days ago, dropped below $1800 earlier today, before a slight correction as of writing these lines.
Where is the bottom for this ongoing crypto bloodbath? No one knows, but it might be worth keeping an eye on the following optimistic signals.
Crypto Fear & Greed Index: Remember April 2020?
The crypto fear & greed index is now at levels not seen since April 2020, which is about the time when the last crypto market crash occurred, taking BTC down below $4,000, losing over 50% in two days at the peak of the pandemic “Black Thursday.”
In hindsight, it was an amazing time to buy in, but it wasn’t necessarily obvious back then. These days, Bitcoin has fallen over 50% from its ~$65,000 high down to $30,000 on Wednesday – is the index right once again, and is this crash a blessing in disguise for people with stablecoins on the sidelines?
here are some times in the last 2 years fear and greed was sub 15.
make of it what you will. pic.twitter.com/TlLe7B7Q5C
— Bluntz (@SmartContracter) May 23, 2021
S2F Model: Lower Band At $30K
Similarly, the stock to flow (S2F) model indicates that BTC is due for an upwards rebound at the $30,000 mark given its stage in the cycle. The S2F model treats Bitcoin as a commodity (given that it has a fixed supply and limited issuance, similar to gold) and thus factors in circulating supply and production speed in order to determine scarcity and therefore price.
IN BITCOIN’S SHORT HISTORY, the S2F model and 4-year cycle have been proven to be reliable. As stated by PlanB, the creator of the model: The continuation of this crash into the next few weeks (effectively the end of the bull cycle) would invalidate the S2F model and 4-year cycle model, which have so far been sound – many analysts predict that it’s not yet time for things to turn around for the worse.
S2F currently plots the lower band at $30K, which is this week’s current low.
On-Exchange Stablecoins At ATH, Waiting Aside?
The amount of stablecoins on exchanges is at a yearly ATH – Lex Moskovski opines that there are ‘a lot of bullets waiting to be deployed from the sidelines.’
Of course, this could merely be a function of a large number of new entrants into the cryptocurrency ecosystem, but it most likely means big players are gearing up to bring in large buys.
In addition, John Bollinger, the creator of the Bollinger Bands indicator, believes that BTC might be nearing a local double bottom.
All of these indicators come together and paint a better picture of Bitcoin’s immediate short-term potential than the market is making it out to seem. After the past few days’ waves of incessant bearish moves, it may be time for BTC to take a breather, as RSI indicates that we are heavily oversold.
Vaporware Altcoins Bleeding Out – BTC Dominance Rising
It’s clear that altcoins have more to worry about – Bitcoin dominance has hit a local bottom at ~40% and has been steadily trending upwards (currently sitting at 47%). It’ll most likely recover even more as the market sheds off the excess weight that had been added on by vaporware coins fuelled by the speculative altcoin mania bubble.
Thousands of new coins (mostly in the form of BEP-20 and ERC-20 tokens) have been created hoping to emulate the success of older meme coins such as Dogecoin. Whereas several of these coins garnered market caps in the millions, it was obvious that something of such magnitude could never be sustainable once taking into consideration their lack of fundamental utility.
As such, it’s fair to assume that smart money has begun the transition away from low cap altcoins and back into Bitcoin, the inevitable king of cryptocurrencies.
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Tags: Bitcoin Bitcoin (BTC) Price Bitcoin Bear Market
FAQs
Bitcoin's price should continue to rise as long as it continues to grow in popularity and its supply cannot meet demand. However, if popularity wanes and demand falls, there will be more supply than demand. Then, Bitcoin's price should drop unless it maintains its value for other reasons.
What is the signal for Bitcoin price prediction? ›
Bitcoin Price Prediction: Rebound to $72,000
While the price has dipped by 9.84% in the last week and 15.89% over the past month, a new development from algorithmic analysis might signal a significant shift on the horizon.
What is the predicted trajectory for Bitcoin? ›
Our most recent Bitcoin price forecast indicates that its value will increase by 12.71% and reach $71,397 by May 08, 2024. Our technical indicators signal about the Neutral Bullish 61% market sentiment on Bitcoin, while the Fear & Greed Index is displaying a score of 71 (Greed).
How low will Bitcoin go prediction? ›
Bitcoin's 2021 fractal indicates more pain
That brings BTC's downside target to around $46,110 by June, a level aligning with its 0.618 Fibonacci retracement line. A decisive break below the 50-week EMA will risk sending the price toward the 200-week EMA at around $32,410, down about 58% from the current price levels.
How much will $1000 Bitcoin be worth in 2030? ›
If Wood is correct and Bitcoin does reach $3.8 million by 2030, an investment of $1,000 would be worth over $60,000. This would result in a compound annual growth rate (CAGR) of over 100%. Read Next: Bitcoin has jumped another 45% already this year – how much would you need to get started today?
How much will $1 Bitcoin be worth in 2025? ›
So, what are the experts saying about Bitcoin's 2025 price? Buckle up, because the ride gets wild. Some analysts, riding the wave of optimism, predict a meteoric rise to $141,000, fueled by factors like a potential Bitcoin ETF approval.
What is the best BTC signal? ›
Top Crypto Signals Groups Compared
| Signal Provider | No. of Signals | Delivery Method |
|---|
| Crypto Whale Pumps | Up to 10 per week | Telegram |
| Learn2Trade | Up to 5 per day | Telegram |
| CryptoSignals.org | 2-5 per week | Telegram |
| AltSignals | Varies (2–100+ per month) | Telegram |
6 more rowsBITCOIN - BTC/USD is part of a very strong bearish trend. Traders may consider trading only short positions (for sale) as… The current short-term bearish trend is expected to quickly fix the basic bearish trend.
What are Bitcoin signals? ›
Crypto signals are instructions sent from a signal provider to an individual that tell traders what cryptocurrency to buy, when and at what price to make their investments, what the sell targets are, and the price at which they should set a Stop Loss.
How low will Bitcoin go in 2024? ›
Bitcoin, it found, is likely to hit an average peak price of $87,875 in 2024, with some experts predicting it will climb as high as $200,000. On the flip side, the average lowest price Bitcoin could hit by the end of 2024, is seen as $35,734, the report said, with some predicting it will fall as low as $20,000.
Similarly to the prediction for 2040, we've used Bitcoin's 3-year CAGR of about 19% to calculate what the price of Bitcoin would be in 2050 based on those parameters. According to the calculation, Bitcoin's price could increase to $5,411,000 by 2050 and grow by more than +10,980% over the next 27 years.
How much will Bitcoin be worth in 2024? ›
BTC Price Prediction 2024-2030
| Year | Minimum Price / Maximum Price |
|---|
| 2024 | $82,000 to $85,000 |
| 2024 | $105,000 to $108,000 |
4 days ago
Bitcoin Price Prediction 2025
With the launch of potentially more Bitcoin-related financial services and the global adoption spark of Bitcoin, BTC prices will maintain a bullish trend in 2025. The cryptocurrency is expected to create a high of $140,449 with a low of $61,357.
Is it safe to invest in Bitcoin today? ›
Bitcoin is a risky investment with high volatility, and generally should be considered only if you have a high risk tolerance, are in a strong financial position already and can afford to lose some or all of your investment.
Is it still good to invest in Bitcoin? ›
Given these factors, the case for investing in Bitcoin remains highly relevant, especially for investors with long-term horizons. While short-term market fluctuations may cause uncertainty, Bitcoin's underlying fundamentals remain robust, making it a resilient asset for wealth preservation and long-term growth.
When can we expect Bitcoin to rise again? ›
Bitcoin Price Prediction October 2024
There's hope for prices to keep going up, with Bitcoin price likely to pass $74,000, forming a new ATH. As the month goes on, we expect prices to keep rising steadily, reaching around $75,500 to $76,000 by the end of the month, closing on a positive note.
What makes Bitcoin rise and fall? ›
Bitcoin's price fluctuates because it is influenced by supply and demand, investor and user sentiments, government regulations, and media hype. All of these factors work together to create price volatility.
What goes up when BTC goes down? ›
The chart below shows bitcoin's market size as a percentage of the broader crypto market – a.k.a. bitcoin dominance (BTC. D on TradingView). When the ratio is trending down, that means altcoins (i.e. crypto investments other than bitcoin) are mostly going up in value versus bitcoin.
How much will bitcoin be worth in 2024? ›
Bitcoin Price Prediction 2024
Rising hopes for interest rate cuts in the US market will bolster BTC's price uptrend. Therefore, 2024 is highly anticipated to be a bullish year for Bitcoin, with a potential high of around $120,000 and a potential low of $35,000.
