On May 24, cryptocurrencies seemed to overlook the recent approval of the spot ETH ETF. Despite this, Bitcoin remains the primary focus. Analysts are providing insights on potential price movements, as Bitcoin hovers near its all-time high.
How Low Can Bitcoin Drop?
Following significant news, cryptocurrencies often experience price drops, a pattern also seen with ETF approvals. Investors had anticipated a strong sell-off during BTC ETF approval, which caused initial worry. Currently, Bitcoin is maintaining its value near its peak, though cautious sentiment persists among investors after the positive SEC news.
Crypto analyst Mags highlights that Bitcoin’s recent failure to surpass its all-time high may lead to a support test around $65,000. Mags suggests that consolidation at this level is probable before the next upward movement.
When Will Bitcoin Hit Bottom?
Analyst George references the price behavior observed on March 14, noting a potential drop to $60,000. He emphasizes the importance of identifying the right entry points for long positions, predicting a significant rise from either the current level or a local bottom area.
Expert Poppe echoes these sentiments, predicting prolonged consolidation for Bitcoin, potentially reaching levels between $61,000 and $63,000.
Key Takeaways for Investors
– Monitor Bitcoin’s resistance near the $65,000 range.
– Watch for consolidation patterns as indicators for entering long positions.
– Be aware of economic data, such as the Service PMI, impacting market sentiment.
– Understand the Fed’s inflation targets and their effect on risk markets.
Additionally, the recent dip in Bitcoin’s value is not entirely attributed to ETF approval. The Service PMI data indicates stronger-than-expected economic activity, leading to inflation concerns. The Fed’s delayed target achievement for 2% inflation has made the market outlook less favorable for high-risk assets.