Bitcoin started Friday's trading session with growth. At the time of writing, BTC is trading at $20,816. According to CoinMarketCap, a digital asset tracking website, over the past 24 hours, BTC was trading between $20,194 and $21,266.
Bitcoin fell to $18,707 last weekend. The digital currency fell below $19,000 for the first time since November 2020.
Since then, Bitcoin confidently aimed for a bullish breakout and made a high of $21,723 on June 21. On Tuesday, BTC pulled back slightly, but on June 23, it continued its rally. If Bitcoin continues to rise, the next significant resistance is located at $23,000.
Notably, since the beginning of June, BTC has already lost 57% of its value, and since January 2022, it has plummeted by 37%.
Since November of last year, when Bitcoin hit its all-time high, soaring above $69,000, the cryptocurrency has already lost about 70%.
On Wednesday, Bitcoin's main counterpart Ethereum also started the trading session with a slight increase and by the time this article was written, it reached $1,150.As for cryptocurrencies from the top 10 by market cap, all of them, except for USD Coin, showed strong growth over the past 24 hours. At the same time, the top gainer was XRP adding 13.16%. At the end of the week, the key favorite in the top 10 most popular digital coins was Solana gaining 27.99%.
According to CoinGecko, the world's largest aggregator of virtual asset data, Polygon Coin increased by 22.8% and topped the list of the top 100 most capitalized digital assets in the last 24 hours, while FLEX Coin decreased by 4.3% and became the top loser in the market.
FLEX Coin declined by 10.3% and was the main outsider among the top 100 cryptocurrencies last week, while TitanSwap skyrocketed by 77.7%) and was among the top gainers.
Crypto analysts' forecasts
Despite the current growth of the first cryptocurrency and the digital asset market as a whole, experts are pessimistic about their future. Today, most experts believe that the cryptocurrency market is declining. At the same time, many experts recall the loud fall of cryptocurrencies in the past, when at a similar state of the market BTC lost about 80%, and altcoins lost about 90%.
Yesterday, having compared the BTC drawdown in the past market cycles, the experts of the investment company Arcane Research said that the potential for the first cryptocurrency reduction remained up to the level of $10,350.
After peaking in November 2013, Bitcoin dropped by 85% in 407 days, according to the research.
The situation in December 2017 was the most similar. Then, after falling to the level of $20,000, the flagship crypto lost 84%.
If in the current situation Bitcoin will follow a similar scenario, it may hit the bottom of $10,350 at the end of 2022, according to experts from Arcane Research.
At the same time, experts named such macroeconomic factors as a high level of correlation with global financial markets, the tight monetary policy of the US Fed, the collapse of the Terra USD (UST) algorithmic stablecoin, and regulation of the crypto industry as the key reasons for the decline in BTC since the beginning of this year.
Earlier this week, Jeff Gundlach, CEO of investment firm DoubleLine, said that Bitcoin could collapse to $10,000 after a series of recent falls that had caused investors to seriously question the stability of cryptocurrency markets.
According to Gundlach, clear evidence of the serious vulnerability of virtual assets was the May crash of the Terra USD (UST) algorithmic stablecoin and the Luna digital token, when the cryptocurrency market lost billions of dollars within weeks.
Earlier, Ian Harnett, director of Absolute Strategy Research, said that the fall of digital gold was not over yet, and it was facing a collapse of up to 80%. This means that Bitcoin may soon fall to $13,000, which, in turn, will negate all current attempts of the first cryptocurrency to recover.
To prove his theory, the analyst cited the previous BTC rallies: the coin collapsed to $3,000 in 2018 after reaching a high of $20,000 a year earlier. Harnett is confident that if the scenario of four years ago repeats, we will see Bitcoin collapsing to $13,000.