Bitcoin remains firmly in the bearish territory as its price fell briefly under the crucial $20,000 during intraday trading but managed a stronghold in the past 24 hours. This is considered a big drop since the weekend when it nearly topped $22,000 leaving investors to grind their knuckles.
Experts believe there’s a bull trap and investors should be wary. The worst is yet to come amid ongoing macroeconomic uncertainty – BTC may see a further drop. At the time of writing this article, Bitcoin was trading at $20,080. It is down by 1.37% in the last 24 hours. Ethereum lost 5.13% of its value in the last 24 hours. It’s holding onto $1,092. In the last 10 days, Ether has managed to hold above the $1,000 mark. The next 24 hours are crucial for the second most popular cryptocurrency.
Richard Usher, head of over-the-counter trading at BCB Group, said that despite Bitcoin and Ethereum’s recent rally, analysts are unconvinced about calling a low in place yet. He pointed out that the general risk environment remains on a knife-edge and risks are skewed to one more sell-off first. Experts believe there will likely be another sell-off in the crypto market over the next few weeks or months. Some expect Ethereum to fall as low as $750 and Bitcoin to $10,000, while others foresee BTC falling to $11,000, and $500 for Ethereum.
Martin Hiesboeck, the head of blockchain and crypto research at Uphold, says there will be no significant improvement for Bitcoin in the short term. He sees the crypto market as a victim of the broader market sell-off of risky assets. Hiesboeck shared that so far the biggest worries are the Russo-Ukraine war, supply chain gluts, and rising inflation. Bitcoin hasn’t proved to be the inflation-proof safe haven as it has been touted.