Bitcoin dropped under $27k, can it recover?

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Bitcoin BTC/USD is by far one of the largest cryptocurrencies in terms of market capitalization.

Many cryptocurrencies have been inspired by it, and some are even utilizing it for various use-cases.

However, this cryptocurrency decreased in value to under $27k, which has spooked investors.

Bitcoin’s fall from its long-term trading range on May 12

Bitcoin fell out of its long-term trading range on May 12, as the ongoing sale pressure has reduced the markets to levels seen in 2020. 

Specifically, according to data from CoinGecko, BTC decreased in value to  $26,297.35, which made it its lowest point since December 28, 2020. 

This weakness occurred as fallout from the Terra LUNA/USD stablecoin, TerraUSD UST/USD, continued to ricochet around the crypto space, with rumors circulating that even professional funds were experiencing issues due to the losses in LUNA and UST.

UST, which aims to keep its value pegged to the UST at $1, decreased to as low as $0.44 on May 11, 2022, and while Do Kwon made an announcement on Twitter on May 10, 2022, about a recovery plan, this has not as of yet increased investor confidence in the project.

Additionally, Australia’s inaugural cryptocurrency exchange-traded funds began trading.

Specifically, the ETFs 21Shares Bitcoin ETF, ETFs 21Shares Ethereum ETF, and Cosmos Purpose Bitcoin Access ETF debuted at the Cboe Global Markets local exchange after their rollout was delayed. 

These portfolios will invest directly into virtual coins, while the Cosmos vehicle will invest in the Purpose Bitcoin ETF.

The question on many investors’ minds right now is, should they buy Bitcoin during the dip.

Should you buy Bitcoin (BTC)?

On May 12, 2022, Bitcoin (BTC) decreased to its lowest point of value of $26,297.35.


In order for us to truly be able to see what this value point indicates for the overall value and future of the BTC cryptocurrency, we will be comparing it to its all-time high and go over the performance it showcased throughout the previous month.

The all-time high of Bitcoin (BTC) was on November 10, 2021, when the token reached a value of $69,044.77. This means that at its ATH, the token was $42,747.42 higher in value, or by 162%.

When we go over the performance of the token throughout the previous month, Bitcoin (BTC), its highest point was on April 2, when BTC was worth $47,003.43.

 Its lowest point was on April 26, 2022, when BTC decreased in value to $38,084.54.This marked a decrease in value of $8,918.89 or 19%.

Since then, however, the token has increased in value to $28,015.95, which means that from the lowest point to the value at the time of writing, the token has increased in value by $1,718.6 or by 6%.

With this momentum in mind, BTC can reach $35,000 by the end of May 2022 and recover moving forward.

The post Bitcoin dropped under $27k, can it recover? appeared first on Invezz.

from Market Analysis – Invezz

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