The Bitcoin (CRYPTO: BTC) price has again slipped back below the psychologically significant US$30,000 level.
At the time of writing one Bitcoin is worth US$29,157 (AU$41,180), down 3.3% since this time yesterday.
The world’s number one token by market cap has come under pressure this year, with soaring inflation figures across Western nations forcing central banks to up interest rates.
With more rate rises expected, risk assets including cryptos have seen some of the heaviest selling.
The tech-heavy Nasdaq is down 27% in 2022, while the Bitcoin price has retraced by 39%. That puts the token down 58% since hitting all-time highs on 10 November last year.
“The markets right now are just punishing anything that’s on the speculative side,” said Chris Gaffney, president of world markets at TIAA Bank (courtesy of Bloomberg).
Now we know what’s been happening.
But the question keeping crypto investors on the edge of their seats is, where to next for the Bitcoin price?
What the experts are saying
Fundstrat Global technical strategist Mark Newton says crypto investors should keep a close eye on US equity markets to buy Bitcoin at a bargain price.
According to Newton (quoted by Bloomberg):
If the S&P falls some more, that should create one final flush and a great buying opportunity for Bitcoin. There’s a lot of bearishness, and we should be approaching a time when you really want to buy into that in the next couple of months.
Heading into June, Noelle Acheson and Konrad Laesser of Genesis Global Trading believe the Bitcoin price will remain fairly rangebound. “Bitcoin is likely to hover around $29,000 to $31,000 for the next couple of weeks,” they said.
Rick Bensignor, president of Bensignor Investment Strategies, also doesn’t think there’s going to be a big break higher over the coming month. “I’d still expect another four weeks of heaviness,” he said.
But he doesn’t believe that heaviness will see Bitcoin fall much further. Looking at the charts, Bensignor said the token has strong support at US$28,900.
Bitcoin price to zero?
On the ultra-bearish side, we’ll leave off with this forecast from European Central Bank President Christine Lagarde, decidedly not a fan of cryptos.
“My very humble assessment is that it is worth nothing, it is based on nothing, there is no underlying asset to act as an anchor of safety,” Lagarde said on Dutch television.