Bitcoin Takes A Dive Below $30,000, What’s Next For BTC?

Ronaldo Marquez

1 year ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Bitcoin (BTC) has failed again to remain above its critical psychological level at $30,000, and it’s currently trading at $29,500. As of this writing, the largest cryptocurrency in the market seems poised to revisit lower levels to regain its bullish momentum. Most altcoins are reaching new highs and gaining dominance.

Bitcoin Dominance Hits Range Highs

Daan Crypto, a well-known cryptocurrency analyst, recently commented on the relationship between Bitcoin’s price and its dominance in the cryptocurrency market. According to Daan, when Bitcoin dominance hits the top of its range, it often precedes a move down to the bottom of the range.

To illustrate this point, Daan marked out three previous periods where BTC.D hit (near) the top of the range and moved down to the bottom. The range that Daan marked out sits at approximately 39-49%.

During the first move down on BTC.D in the summer of 2021, Bitcoin’s price remained flat with a slight upward trend. However, during the second move down on BTC.D from October 2021 to January 2022, Bitcoin’s price experienced a significant correction, dropping from the $60K region to the $40K region.

The third move down on BTC.D in the summer of 2022 saw Bitcoin’s price drop from approximately $30K to $20K. We are again witnessing a rejection from the Bitcoin dominance range highs, which could signal a potential move down to the bottom of the range.

As reported by NewsBTC, Bitcoin has a near-term support level of $29,500. This level was previously a strong resistance but has now flipped to become an essential support for Bitcoin. If the cryptocurrency experiences a further decline, the $28,600 level is expected to serve as another key support floor.

Red Months For BTC Incoming?

Onchain Edge, a crypto analyst, recently examined the historical price performance of Bitcoin during May and June over the past 10 years. The analysis revealed five red and five green months in May, indicating a 50% chance of either outcome.

Furthermore, there has only been one other year, 2013, where Bitcoin had four green months in a row, suggesting that predicting the May price trend is challenging. However, the analysis also looked at the performance of Bitcoin in June, where the trend continuation was observed in seven out of ten months.

If May was red, then June was also red, and if May was green, then June was also green. This trend indicates that June’s price performance highly depends on May’s performance.

As of this writing, Bitcoin has experienced a decline of over 3% in the last 24 hours. If Bitcoin’s dominance coincides with a potential red month of May, then bulls may face a challenging ride ahead. However, it is worth noting that the tides of the crypto winter seem to be fully in order, indicating that bulls may need to exercise patience.

Featured image from Unsplash, chart from TradingView.com

Ronaldo Marquez

Ronaldo is an experienced crypto enthusiast dedicated to the nascent and ever-evolving industry. With over five years of extensive research and unwavering dedication, he has cultivated a profound interest in the world of cryptocurrencies.

Ronaldo's journey began with a spark of curiosity, which soon transformed into a deep passion for understanding the intricacies of this groundbreaking technology.

Driven by an insatiable thirst for knowledge, Ronaldo has delved into the depths of the crypto space, exploring its various facets, from blockchain fundamentals to market trends and investment strategies. His tireless exploration and commitment to staying up-to-date with the latest developments have granted him a unique perspective on the industry.

One of Ronaldo's defining areas of expertise lies in technical analysis. He firmly believes that studying charts and deciphering price movements provides valuable insights into the market. Ronaldo recognizes that patterns exist within the chaos of crypto charts, and by utilizing technical analysis tools and indicators, he can unlock hidden opportunities and make informed investment decisions. His dedication to mastering this analytical approach has allowed him to navigate the volatile crypto market with confidence and precision.

Ronaldo's commitment to his craft goes beyond personal gain. He is passionate about sharing his knowledge and insights with others, empowering them to make well-informed decisions in the crypto space. Ronaldo's writing is a testament to his dedication, providing readers with meaningful analysis and up-to-date news. He strives to offer a comprehensive understanding of the crypto industry, helping readers navigate its complexities and seize opportunities.

Outside of the crypto realm, Ronaldo enjoys indulging in other passions. As an avid sports fan, he finds joy in watching exhilarating sporting events, witnessing the triumphs and challenges of athletes pushing their limits. Furthermore, His passion for languages extends beyond mere communication; he aspires to master German, French, Italian, and Portuguese, in addition to his native Spanish. Recognizing the value of linguistic proficiency, Ronaldo aims to enhance his work prospects, personal relationships, and overall growth.

However, Ronaldo's aspirations extend far beyond language acquisition. He believes that the future of the crypto industry holds immense potential as a groundbreaking force in history. With unwavering conviction, he envisions a world where cryptocurrencies unlock financial freedom for all and become catalysts for societal development and growth. Ronaldo is determined to prepare himself for this transformative era, ensuring he is well-equipped to navigate the crypto landscape.

Ronaldo also recognizes the importance of maintaining a healthy body and mind, regularly hitting the gym to stay physically fit. He immerses himself in books and podcasts that inspire him to become the best version of himself, constantly seeking new ways to expand his horizons and knowledge.

With a genuine desire to become the best version of himself, Ronaldo is committed to continuous improvement. He sets personal goals, embraces challenges, and seeks opportunities for growth and self-reflection. Ultimately, combining his passion for cryptocurrencies, dedication to learning, and commitment to personal development, Ronaldo aims to go hand-in-hand with the exciting new era that the emerging crypto technology is bringing to the world and societies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.