Bitcoin Price: 80% Drop Coming?
The largest cryptocurrency by market cap ended May, a historically bullish month, in the red. Bitcoin has been under enormous downward pressure from traditional markets as a result of central bank quantitative tightening and the ongoing fallout from Russia’s invasion of Ukraine.
The collapse of Terra’s UST stablecoin and LUNA token has caused irreparable damage to investor confidence. While Terraform Labs has successfully relaunched the collapsed network, it hasn’t done much to boost the overall market sentiment.
Most analysts believe that bitcoin has entered a healthy breathing period and may fall slightly lower. However, in a June 4 tweet, Brandt noted that the flagship cryptocurrency could be on the verge of its fourth pullback of more than 80% since 2011.
Brandt was replying to a tweet by Cheds, a pseudonymous crypto analyst, in which he predicted that bitcoin’s price might drop to $12,000 in the near future. If this is true, it will be the first time a correction falls below the previous 2017 historic high of nearly $20,000.
BTCUSD Chart by TradingView
Bitcoin appears to be approaching a tipping point. The cryptocurrency’s short-term future is dependent on its ability to maintain a strong hold on the $29K key support level. However, current conditions suggest that it could experience further decline before the crypto winter ends.
Still Hope
Bitcoin gave investors a glimmer of hope at the start of this week after staging a mini-upsurge to reclaim the $30,000 zone on Monday before briefly reaching $32K the next day.
In all, the flagship cryptocurrency has lost more than 18.8% of its value in the last 30 days, with its market cap falling from $760 billion to $566 billion.
Before deploying any capital, investors will likely continue to monitor bitcoin’s price movement. Nonetheless, some analysts remain optimistic about bitcoin’s long-term trend, owing to recent positive adoption developments as well as its robust fundamentals.
