Bitcoin (BTC) is expected to drop to $ 32,500 in the short term after the disappearance of several key levels of support on Friday.
The BTC / USD pair reached a low not seen since the start of March on Friday, when analysts set their expectations – and buy orders – in the latest bitcoin price correction.
Brandt plans to buy Bitcoin for $ 32,501
Bitcoin setbacks tend to scare new investors, while old hands seem to be fighting each other over who could look cooler when the numbers drop.
But when the largest cryptocurrency fell to $ 53,000 and then to $ 50,000, signs of a downtrend began to appear in the short term.
For seasoned trader Peter Brandt, known for calling out several BTC price phenomena in recent years, there was still plenty of opportunity to buy volatility. So much so, that he announced that he had only planned a purchase order of $ 32,501.
However, like other famous analysts, Brandt is far from being bearish on bitcoin in the long run and agreed to predict word of the popular Twitter account Dilution Safe, which claimed that $ 46,000 was the line in the sand for BTC / USD.
The calculation shows that the support base mainly consists of several price points. The orders of investors and major traders, along with the technical Fibonacci level, indicate that the bears will find it difficult to push the market down much.
“I’ve also seen a significant volume of cross-chain purchases on the blockchain in the $ 47-49K region, which I expect will be very solid support even if we drop below these price levels,” said Philip Swift of DecenTrader. The latest analysis of the trading group was released on Friday.
Additionally, we are still seeing significant growth in the number of Bitcoin blockchain users, which is also optimistic. So even though there is a lot of anxiety on social media this week, I don’t think there is any need to panic or worry too much about the Bitcoin price at the moment.
BTC Exchange’s Inbound and Outflow Chart Source: Lex Moskovsky / Twitter
More BTCs were deposited on exchanges within the 24 hours prior to Friday than at any time since the March 2020 collapse among assets, according to Glassnode.
Meanwhile, for other Twitter analysts at Rekt Capital, the rally is a biblical event spreading to every bull market for bitcoin.
The report notes that the beginning of the second-quarter correction, which will occur about 80 days after the end of the first-quarter correction of $ 42,000, mimics what happened to Bitcoin during its bullish move in 2017.
Comparison of the first and second quarter Bitcoin / USD decline. Source: Rekt Capital / Twitter
Altcoins are suffering, but a cash injection is coming
When bitcoin lags behind, altcoins see another red sea after undergoing a massive sell-off, but not for long.
The same conclusion was reached by Philip Swift, who weaved by Ether (ETH) after the largest alternative currency by market value hit a record high this week. In general, altcoins are ready for the cash flow from investors who think Bitcoin is too expensive.
He added, “With the influx of new money entering the market and the new players deeming Bitcoin to be“ too expensive, ”I expect the money to flow into alternative digital currencies.
“This will lead to a diminished dominance of Bitcoin for a while as some alternatives outperform Bitcoin.”
Bitcoin lost a controlling stake in the capitalization of the cryptocurrency on Thursday, falling into the 40-50% area for the first time since 2018.