Crypto prices have plummeted over the past week as Bitcoin fell below $25,000 for the first time in nearly a year. The price has fallen from $49,000 at the beginning of March to under $25k at the end of mid-May. This dip in Bitcoin prices is the result of oversupply constraints in most markets. The price of Ethereum has also plummeted below $2,000 after hitting $2,000 over the weekend. Despite the price decline, Ethereum’s RSI is now overbought at 71, the highest level since April. crypto prices plunge with bitcoin falling below $25k
There is a definite risk sentiment problem in the cryptosphere right now. This has been exacerbated by recent news that the CPI reading showed that prices rose 8.6% year-over-year in May. This has sent crypto prices tumbling across the board, with Bitcoin down 9.4% and Ethereum down 10.6% to around $1,340.
Bitcoin has been struggling to hold onto its current support level. Bitcoin has been trading at levels last seen at the end of 2020. The market cap of all cryptocurrencies combined has fallen below $1 trillion. Bitcoin is down by over 65 percent from its all-time high of $69,044 in November 2021. The currency is expected to continue to fall until next week. Bitcoin is still unable to break through the $23,000 support level. This is because of fears over rapidly increasing inflation.
While Bitcoin has been falling, losses are still not as significant as some of its altcoins. Economist Peter Schiff had previously predicted that Bitcoin would crash to $20,000 and that the market cap would fall below $800 billion. He warned investors not to buy dips because the cryptocurrency market would be volatile and unregulated. Cryptoasset prices have fallen for twelve straight weeks, but have shown signs of bottoming out in mid-May. A number of inflation metrics have further spooked the market.
Regardless of how Bitcoin recovers, it is still possible for it to hit the $25k mark again. In the long run, the price of BTC could rise to the $55,000 mark – a significant amount above the current price. In 2024, the price of Bitcoin is expected to rise above $35,000, while the minimum will fall to $28k. The price of Bitcoin is expected to hit $1 million in 2030.
The BTC/USD pair has formed a double top pattern and a breakout may occur soon. This will provide additional buying momentum for the pair and take it back towards the $25,000 resistance zone. Furthermore, the MACD indicator, which measures price volatility, may signal an imminent bullish surge in short-term trading.