Bitcoin (BTC) It has lost more than 37% this year, falling back below $30,000. However, a researcher revealed that he sees even more bearish potential for BTC.
“Beware These Two Levels For Bitcoin”
Josh Olszewicz, head of research at investment manager Valkyrie, said that volatility must subside for Bitcoin price to establish a foothold in the short term:
“We can look at things like the 200-week moving average, which is currently around $22,000. Or we can look at the realized price, which is the average price of coins moving on the chain. (This is currently hovering around $23,800).
This bottoming move will probably cover at least the entire 3rd quarter, maybe even the 4th quarter if it happens this year.”
Olszewicz said that other factors, such as the US Federal Reserve’s increase in interest rates, also play a role in BTC’s market performance.
Institutional Investors May Lead the Decline
Olszewicz suggested that institutional investors could lead the decline. Olszewicz noted that the average value of on-chain transactions reaches tens of thousands of BTC:
“A large part of the volume is definitely driven by institutional-sized fund flows.”
However, Olszewicz said the market movement continues to be more dependent on individual investors than institutional investors. Olszewicz, cryptocurrencies He thinks that those who are in the learning phase of learning about the market are entering the market to test themselves and “see if they can survive” during this bear market:
“We’ve seen this bullish and bloated before, and this cycle may repeat as investors enter BTC for the first time. In 2018, the average number of wallets holding BTC was more than 27 million, but today it has grown to over 41 million.”
*Not investment advice.