The crypto market has seen some major setbacks over the past few weeks, and firstborn crypto has not been spared. BTC has been hit by the torments of a declining market over the past few weeks. After peaking at $49,000 in 2022 in late March, the asset has since experienced a consistent downtrend, leaving investors ambivalent about its next stop.
After a consistent downtrend, Bitcoin ended March valued at $46,000 after peaking at $49,000. Since then, the asset has steadily declined, thwarting investors hoping for a rebound from what was perceived as a short-lived decline.
BTC has not escaped the challenges of the crypto market
The value of BTC is down 7.14 percent over the past week, with a 24-hour drop of 2.52 percent, giving the asset a trading value of $40,139 at press time.
The asset hit a low of $39.3k on April 11, breaking the $40k support level – its lowest since mid-March. It closed that day at $39.5k, climbed to the $40k support level by the end of the next day and has been fluctuating between the $39k and $40k support zones ever since.
Reading 22 at press time, the Crypto Fear and Greed Index (FGI) — one of the methods used to measure market sentiment in the crypto space — is now suggesting “Extreme Fear.”
Some analysts remain optimistic
Despite the difficulties BTC, and by extension the entire crypto space, is facing, some analysts remain optimistic and predict that the market will see a significant recovery sooner than expected.
While short-term holders have capitulated, most long-term holders have remained unfazed by reports of whales accumulating more BTC over time in this current market environment. Will Clemente, Lead Insights Analyst at Blockware Solutions, recently tweeted that BTC entered the “Zone of Heavy Opportunity (green)” based on data from blockchain data provider Glassnode.
He also mentioned that this is the longest time BTC has been in the zone, suggesting the asset is more likely than ever to make a comeback.
Disclaimer
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
About the author
Olivia’s interests span the cryptocurrency, NFT and DeFi industries. She is just as fascinated with cryptocurrencies today as she was when she first started learning about it in 2017. She is actively looking for the latest Crypto related stories. When she’s not writing, she’s feeding her pet chihuahua or curating vegan recipes. Reach me at [email protected]
