By
Chimamanda U. Martha
April 24th, 2024
The price of Bitcoin is still trading low with bears warning about possible losses and Bitcoin’s speculative nature. Regardless, bulls are optimistic.
The price of Bitcoin has been on a continuous fall, unable to hold on to the small gains it accumulated following the crash from the weekend. Bitcoin traded below the $50,000 level and even dropped past $48,000 as the world’s largest coin keeps struggling to repair losses.
Most analysts consider the $50,000 a crucial point for Bitcoin. For the most part, market watchers believe that a failure to hit and remain above $50,000 might portend more losses for the network as the year draws to an end. According to Crypto Finance Group board member Marc Bernegger, “$50,000 is definitely an important psychological price level for bitcoin but as we see right now, there is no strong support from market participants at this level.”
Speaking on the possible negative effects of Bitcoin’s price struggle, a Fundstrat Global Advisors exec, Armando Aguilar, believes that the accelerated loss could “create additional market overreaction and bring additional sellofs.”
However, Aguilar is a bit optimistic about Bitcoin’s chances, considering the hourly Moving Average Convergence Divergence (MACD). According to him, the MACD is “losing steam in the bearish zone”, leading to a possible increase in price. The Fundstrat vice president of Digital Assets Strategy also offered key resistance levels for after $50,000. Aguilar specified $50,500, $52,000, and $53,750.
More Bitcoin Price Opinions
Some analysts believe that Bitcoin’s current price behavior points to its speculative nature. Suggesting that the asset is too volatile to be relied on, Grace Capital president and CIO Cate Faddis told Bloomberg TV that the crypto market is reminiscent of the 2008 real estate crisis.
Another financial services exec is also warning crypto proponents about instability. According to Essex Financial Services president and chief executive officer Chuck Cumello:
“People have to understand truly, in my opinion, what it is. It’s a speculative investment. A more mainstream investment doesn’t drop 20% on a weekend.”
However, the Bitcoin community still has many bulls regardless of the bears. For instance, HashEx VP of Operation and Product Galina Likhitskaya pointed out that institutional investors are still buying. She stated that institutions like MicroStrategy still view Bitcoin as a safe-haven asset and are still pumping in more money. MicroStrategy recently bought an additional 1,434 Bitcoin for about $57,477 per BTC.
Bitcoin in Congress
On Wednesday, six crypto CEOs testified before Congress at the US House Financial Services Committee. The heads of Circle, Coinbase, and other major crypto firms asked the lawmakers to be more favorable towards the crypto sector. The visitors tried to explain crypto and its potential, asking for encouraging regulatory support. Interestingly, the lawmakers at the hearing were welcoming of the guests. This seemed to surprise many people who thought the CEOs would meet harsh treatment. For instance, California Democrat Rep Maxine Waters asked questions about the sector. She sought information about the advantages of crypto, but also genuinely shared varying concerns.