Bitcoin (BTC), the premier cryptocurrency, has been finding it difficult to break through the significant $30,000 price level in recent weeks, despite receiving renewed support from factors such as the current banking crisis in the United States. As Bitcoin experiences a lackluster performance, market analysts are closely monitoring its next probable price movement, especially with regard to its next all-time high.
One pseudonymous crypto analyst, known as El_crypto_prof, suggested on Twitter on May 13 that Bitcoin’s price action follows a pattern of higher highs and higher lows that often leads to a parabolic rally. This means that as the cryptocurrency’s value increases, it tends to surge even faster, resulting in exponential growth. Based on this pattern, the analyst implied that Bitcoin could possibly achieve a new all-time high before 2025. This is because the cryptocurrency has been consistently exhibiting a series of higher lows over the past few months, which could indicate that it is on track to establish a new higher high.
Besides the historical chart pattern trends, Bitcoin is also relying on factors like the upcoming halving event and potential regulatory clarity as a possible foundation for a new all-time high. The last record high was in late 2021 when the asset peaked at nearly $69,000. However, it is worth noting that Bitcoin has been unable to maintain gains above the $30,000 level since mid-April. As of May 12, the cryptocurrency saw its lowest level of trade since mid-March, plunging below $27,000 due to ongoing volatility fueled by low liquidity in the cryptocurrency markets.
The renewed losses in Bitcoin can also be attributed to the increased regulatory scrutiny in the industry. Recently, Bitcoin miner Marathon Digital received a subpoena from the U.S. Securities and Exchange Commission (SEC), raising concerns about potential violations of federal securities laws through related-party transactions. This development has created uncertainty for the publicly traded mining company.
As Bitcoin looks to reclaim a new record high, the crypto community projects a possible price decline in the coming weeks. According to a Finbold report, a crypto community with an 82% historical accuracy predicted that Bitcoin would likely tumble and trade at $24,753 on May 31.
At the time of writing, Bitcoin was trading at $26,801, reflecting a modest daily gain of around 1.6%. However, on a weekly basis, the cryptocurrency has declined by almost 7%. A look at Bitcoin’s technical analysis reveals a prevailing bearish sentiment. According to a review of one-day gauges obtained from TradingView, the recommended sentiment is “sell” at 11. The moving averages indicate a “sell” sentiment at 9, while the oscillators are neutral at 8. In the meantime, Bitcoin is attempting to breach the $27,000 support level, potentially creating room for the cryptocurrency to reclaim the $30,000 level.
It is important to note that the content in this article should not be considered investment advice. Investing is speculative, and when investing, your capital is at risk.
In conclusion, the current market situation presents a mixed outlook for Bitcoin. While there are potential factors such as the upcoming halving event and possible regulatory clarity that could propel the cryptocurrency to a new all-time high, there are also considerable obstacles in the form of regulatory scrutiny and ongoing market volatility that may hinder its progress. As a result, investors should remain cautious and maintain a balanced perspective when trading Bitcoin. New developments in the industry, as well as the overall market trajectory, should be closely monitored to make informed decisions about the cryptocurrency’s potential future price movements.