Analysts are questioning whether BTC can sustain above $20K amid weak investor confidence.
Little hope with Bitcoin
The largest cryptocurrency by market capitalization – Bitcoin is trading at over $21k as the price is up slightly by 2.17% over the past 24 hours. However, this weekend could pose another test for BTC, analysts say.
“This weekend could be another testing period for the cryptocurrency, despite the resilience shown this week in holding back above such a major level,”
Oanda senior market analyst Craig Erlam said.
“The support still looks shaky below and another break could see confidence in the space really put to the test.”
Last Friday, bitcoin traded at $20,441. But over the weekend, the cryptocurrency fell to $17,601 as it faced massive selling pressure.
Altcoins continue to outperform Bitcoin, with Infinity Axie (AXS) and Polygon (MATIC) among the biggest gainers, having gained over 16% and 13%, respectively, in the past 24 hours.
Simon Peters, a crypto market analyst at Israeli investment firm eToro, said that the growing recession risk and poor corporate earnings could further affect the share price, which has recently been correlated with cryptocurrency prices. Negative trends in the traditional market can then be reflected in cryptocurrency.
“It’s too early to say if bitcoin will stabilize at $20k,”
“Fear has eased somewhat in the crypto market this week, but it has not completely disappeared.”
Peters said.
Traditional markets rallied, with the S&P 500 index up 2.4% recently and the tech Nasdaq up 2.5% after the University of Michigan’s May monthly consumer sentiment index adjustment, showing lower inflation expectations than first reported. It’s a faint sign that the US economy may be cooling down and that the US central bank may not have to raise interest rates as suddenly as many have predicted.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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