New BTC Price Prediction as Bitcoin Slump Continues
Bitcoin continues its downward trend that has lost it much investor confidence this week as the crypto market remains bearish.
Quick overview
- Bitcoin (BTC) is currently experiencing 'Extreme Fear' sentiment, trading at approximately $87,613 after a 6% loss over the past week.
- The cryptocurrency is struggling to maintain investor confidence as it remains below the psychologically significant $90K resistance level.
- Despite positive economic indicators and a climbing stock market, Bitcoin and other cryptocurrencies continue to face significant losses.
- Analysts predict potential further declines for Bitcoin, with some forecasting a bottom around $80K, although a newly drafted regulatory bill may provide some recovery.
Bitcoin (BTC) sentiment is in the “Extreme Fear” portion of the Fear & Greed Index as the coin is close to $88K and continues a downward trend that has caused more than 6% in losses over the last week.
Now at $87,613 (BTC/USD), Bitcoin is near its January low point and has caused investor confidence to drop sharply in recent weeks. Tremendous ETF outflows and high selling pressure are keeping the BTC rate low and pushing the F&G Index into Extreme Fear.
BTC/USDBecause Bitcoin has stayed below $90K for the better part of a week, investors are rightly worried. This is the same resistance level that Bitcoin could not seem to beat through November and December of last year, and now the coin is back up against the same level.
Bitcoin in the Danger Zone
What does it mean for Bitcoin to be below $90K right now? This is a psychologically important level that investors are paying a lot of attention to. By this time in January, analysts expected the coin to be above $100K, but Bitcoin moved in the other direction as economic factors hit the market. Now, even though the economy is looking better than it has in recent weeks, the coin has moved below the key resistance level and will have a hard time clawing its way back up.
The longer Bitcoin stays around a price that is $90K or below, it will suffer increased investor disinterest and falling confidence. The coin is not likely to get a bump from the Federal Reserve this month, since their upcoming monetary policy meeting this week is expected to result in no new rate cut.
Crypto markets on the whole are in a slump, with Bitcoin losing 6.2% over the last seven days. Ethereum (ETH) has it even worse, with losses of around 10% for the week. BNB (BNB) is down 6% as well, and Monero (XMR) has lost a startling 26% over the last week. These are incredible losses for the market at a time when it should be surging.
President Donald Trump has stepped back from issuing new tariffs, and with that threat out of the way, the stock market is climbing, but the crypto market is not. A new bill has been drafted for the cryptocurrency market that should set up a more sensible and modernized regulatory framework, but even that news has not helped to pull the crypto market out of its late January slump.
As the fear and green Index continues to look sour for Bitcoin, we expect the coin to fall further. Some analysts are calling for a bottom at $80K, while others fear even further drops for the coin in the coming weeks. What is certain is that the longer BTC’s price stays under $90K, the more investors it will lose. No one wants to stick with a stagnant coin.
The newly drafted bill could help Bitcoin claim back some of its losses, though, and the rising strength of the stock market may improve investor confidence as well. We anticipate that Bitcoin will move on those strengths and jump back above $90K next week, thanks in part to its decent early January performance.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
- Read our latest reviews on: Avatrade, Exness, HFM and XM
Save