Crypto investors are currently displaying a significant reduction in risk appetite due to extended periods of market negativity. Bitcoin (BTC) has seen fluctuations, falling to $61,100 and then rising to $63,000. Meanwhile, altcoins have been persistently struggling. Experts in the market are sharing their forecasts under these conditions.
Bitcoin’s Current Performance
On May 14, Bitcoin experienced a 3.3% drop, testing the $61,000 mark once again. Despite efforts by bulls to exceed $63,500, they have not succeeded. Although the long-term view suggests an upward trend, the short-term outlook remains bearish. Nevertheless, some analysts remain optimistic, believing that $70,000 is still achievable.
Well-known crypto analyst Cryptotoad has commended bulls for defending the $60,500 level. He emphasized that for the current downtrend to reverse, BTC needs to close above $67,000. Failure to do so could see BTC testing the $57,000 level again.
What Do Experts Predict for Bitcoin?
The latest Producer Price Index (PPI) data exceeded expectations at a 0.5% monthly increase, favoring bearish sentiment. As fear and uncertainty dominate, there’s a noticeable shift towards more stable assets, weakening the crypto market’s risk appeal. ETF outflows are ongoing, with the latest data reporting a $50.9 million net outflow from GBTC.
Michael Poppe has highlighted that potential ETF rejections are adding pressure to the market. He noted that altcoins, in particular, are in a downward spiral, which is likely to continue until the ETH ETF decision is announced next week.
Actionable Insights for Investors
Here are some concrete steps investors can consider in the current market scenario:
- Monitor Bitcoin’s ability to close above $67,000 as a potential bullish signal.
- Prepare for possible further declines in BTC towards $57,000 if resistance persists.
- Expect continued altcoin declines until the ETH ETF announcement.
- Consider buying dips but maintain patience for market recovery signals.
In a previous analysis, Rektcapital discussed Bitcoin’s ‘Danger Zone’ leading up to its halving events. Historically, Bitcoin has shown retracements 14-28 days before its halving. This pattern appears to be repeating, suggesting that the current cycle resembles the one in 2016.
As the market remains uncertain, investors are advised to stay alert and make informed decisions based on upcoming developments and historical patterns.