While investors are waiting for new rises in Bitcoin, this week has been an important week for cryptocurrencies.
While the US consumer price index (CPI), which will be announced next Thursday, is considered to be a new catalyst for Bitcoin and altcoins, analysts said that past trends show that prices may fall soon.
Speaking to Barron's, cryptocurrency exchange Bitbank analyst Yuya Hasegawa warned that, looking at historical data on Bitcoin, Bitcoin could fall in the near term.
“Bitcoin's short-term volatility has reached historically low levels. Once these levels are reached, the market enters a 'wait and see' mood.
At this point, and given the growing concerns of the market, the next stop could be around $28,000 for BTC. Recovery over $30,000 in the next few days is probably off the table.”
Antoni Trenchev, co-founder and managing partner of crypto lender Nexo, also commented on BTC.
Stating that the third quarters were generally declining and that it was the weakest period of Bitcoin, Antoni Trenchev explained the level he expected a decrease.
“Historically, the third quarters are Bitcoin's weakest period. So things could get worse before they get better in the coming weeks.
At this point, Bitcoin could drop to $25,000, and that wouldn't be unexpected. But BTC should ideally stay above the 200-week moving average of around $27,300 as this tells us whether Bitcoin is in a bullish or bearish trend.
However, the US consumer price index (CPI) data to be released in the coming days may bring a new catalyst to the crypto market.
Unlike traditional finance, Bitcoin hasn't benefited much from the slowing US inflation in recent months and the prospect of the US tightening cycle coming to an end soon.
This is further proof that we are in a summer crypto recession.”
Bitcoin continues to trade at $ 29,013, with a 1.40% decline in the last 7 days.
*Not investment advice.