After the price of Bitcoin (BTC) fell below the critical support level of $20,000 in June, crypto traders and investors were left wondering where the bottom is as downward pressure continued to be exerted on the flagship digital currency.
This resulted in a crisis that is currently engulfing the entire digital asset sector on a global scale, and in turn, has impacted not just retail investors, as data acquired by Finbold indicates that almost 70% of Bitcoin millionaires were wiped in H1 2022.
Due to the unpredictability of Bitcoin’s price movements, which have included both an all-time high and significant losses in the last year, there has been plenty of anticipation of the asset’s next move.
The cryptocurrency community on CoinMarketCap predicts that Bitcoin’s price will increase by 88.14% from its current price to $36,668 by July 31, 2022. This forecast is calculated as an average of the votes submitted by 28,319 users.
The price projection is based on the average of the last six predictions provided by the crypto community, which has historically estimated Bitcoin prices with an accuracy rate of 61.5%.
Bitcoin is reaching historic levels of overselling
At the time of publication, Bitcoin is trading at $19,452, up 1.68% on the day but down 6.91% across the previous week, with a total market worth of $371 billion, according to CoinMarketCap data.
Crypto trading analyst Rekt Capital has noted Bitcoin is reaching historic levels of overselling. He noted:
“At some point, this extreme overselling will coincide with the point of maximum financial opportunity.”
He also highlighted:
“Highest ever BTC Monthly sell-side volume levels occurred in March 2020, May 2021, and May 2022 and June 2022.”
The analyst added:
“Some of the highest Monthly seller volume has taken place over the past two months.”
Notably, Bitcoin dropped 56% in Q2 2022 its worst quarterly performance in a decade; in particular, over the last quarter, Bitcoin and the cryptocurrency market operated in a high inflation environment. This was due to the Federal Reserve’s efforts to impose high interest rates. Notably, volatile assets such as Bitcoin have been hit hard as concerns about an economic slowdown have grown.
Meanwhile, Bitcoin and the stock market have recorded a higher link, despite the fact that the equity markets are also under the strain.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
Source: https://finbold.com/crypto-community-sets-bullish-bitcoin-price-for-july-31-2022/