Bitcoin Price will Continue to Drop Below $30,000, according to Bloomberg Analysts

Will Bitcoin have a bleak future?

The cryptocurrency market is currently bearish, and according to Bloomberg analysts, $30,000 is appearing to be the most expected price level. The inability of the Bitcoin price to stay above the previous support level in the $37,000 – $38,000 range justifies these expectations.

John Roque of 22V Research said to Bloomberg: “In the globe’s latest maelstrom — U.S./Russia/Ukraine — Bitcoin, the asset purported to be the answer to every question, has quietly weakened and is notably underperforming its arch-enemy, gold,”.

As traders increasingly favor gold, Roque predicts Bitcoin will fall below $30,000, a level it hasn’t seen since July.

Even if there is a short-term correction or stabilization, bearish tendencies should continue to prevail in the coming days. In terms of the premier cryptocurrency’s dynamics over the last two years, the price level of $27,000-$30,000 could be considered major support. As a result, most market analysts believe that a further price drop to $30,000 is almost unavoidable.

However, price changes after the break of the major support level could follow one of two scenarios: either the formation of a new bullish cycle from the $30,000 level or an uncontrolled price decline. Many crypto investors are currently hesitant to open long positions due to the possibility of the second scenario.

The decline in the Bitcoin-to-gold ratio is another significant aspect of the crypto market crash. Bitcoin has tended to be more profitable than gold over time. However, recent shifts suggest that gold has become more effective as a store of value as it has risen in value against the US dollar, while BTC continues to fall in value. The Bitcoin-to-gold ratio is currently at its lowest level since mid-2021.

According to Katie Stockton of Fairlead Strategies, BTC, which is currently trading below a long-term support level of around $37,400, will face technical resistance at $27,200.

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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