Originally published on: May 13, 2022
Bitcoin failed to break through the $31,000 mark on May 13, raising concerns about a potential continuation of the downward trend. Despite reaching close to $31,000 earlier in the day, BTC/USD is now consolidating around $30,000.
While U.S. stock markets showed some signs of recovery, with the S&P 500 up 2.2% and the Nasdaq gaining 3.3%, Twitter stock saw a dip of 7.7% due to Elon Musk delaying his takeover bid.
The weakening U.S. dollar, which declined 0.2% from its recent highs, traditionally has a positive impact on Bitcoin and other risk assets.
Although optimism around Bitcoin is gradually returning, analysts warn that a deeper price crash may still be on the horizon. On-chain analytics platform Material Indicators highlighted the need to consider fundamental changes before investing in Bitcoin.
Several experts, including popular trading account HornHairs, believe that Bitcoin needs to reclaim $50,000 on the weekly chart to avoid a severe market downturn. Others suggest that BTC/USD could drop to $14,000 to fulfill the typical 80% drawdown from all-time highs.
Former BitMEX CEO Arthur Hayes predicted a potential drop to $20,000, emphasizing the need for the crypto markets to stabilize. He also urged investors to prepare for an extended period of market turbulence before Bitcoin could reach “millions of dollars” by 2030.
While the market outlook remains uncertain, it is crucial for investors to conduct thorough research and assess risks before making any investment decisions.
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Remember, every investment carries risks, so proceed with caution and seek professional advice when needed.
