By
Chimamanda U. Martha
April 24th, 2024
Bitcoin is showing signs of bounceback after a strong correction earlier this week. However, analysts predict that the chances of Bitcoin going lower could be higher from here.
While Bitcoin (BTC) price has been showing a close correlation to the US equity market, it has shown an inverse correlation with Gold off lately. The XAU/USD trading pair is at its highest since March 11 and moved up above the $2,000 mark once again. Explaining the Bitcoin price/Gold correlation, analyst Colin Wu writes:
“A 50-day correlation coefficient for Bitcoin and gold is around minus 0.4, the lowest since 2018. For now, Bitcoin remains tightly correlated with the Nasdaq 100 index. The Nasdaq 100 is down about 15% this year, while bitcoin has shed some 16%”.
Bitcoin Price Movements
But despite the Monday price crash, Bitcoin has recovered by 5% today. As of press time, Bitcoin is trading at a price of $40,742 with a market cap of $776 billion. The recovery comes as the broader cryptocurrency market is up 5% adding near $100 billion to investors’ wealth.
In his latest YouTube update, popular crypto trader Crypto Ed has given some crucial price levels to watch. “First need to reclaim $40,000; if we manage that, it’ll certainly give a bullish impulse to the market,” he said. However, he adds that $43,000 will be a local high in this case.
Thus, looking at the current price action, Bitcoin investors seem to be in the safe zone. In case of a near-term retreat, Crypto Ed expects BTC to bottom at $37,500. Crypto Ed used the Elliot Wave analysis to note that Bitcoin can still head lower to $30,000 despite the recent bounce. He predicts BTC price dropping to $30,000 in two weeks.
In a note to investors last Sunday, John Roque, technical analyst at 22V Research said that despite the recent Bitcoin price correction, the RSI didn’t drop to the “oversold reading”. Thus, he expects that the $35,000 near-term support won’t hold. “We continue to believe that it will get to the $30,000 level,” he said.
Crypto Security Concerns on the Rise
While the crypto market participation grows, crypto hacking incidents have been on the rise simultaneously. Last week, the US Federal Bureau of Investigation (FBI) said that the $600 million Axie Infinity hack has links to North Korea’s notorious hacking group Lazarus Group and APT 38.
During a press release last week, the investigating agency said:
“The FBI, in coordination with Treasury and other US government partners, will continue to expose and combat the DPRK’s use of illicit activities – including cybercrime and cryptocurrency theft – to generate revenue for the regime.”
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