Reasons Why Bitcoin All-time high Might Not be Surpassed this Month
With one month already gone in the second quarter of 2022, and we have been in the second month, we shall look into some of the reasons why Bitcoin might not break its present all-time high value of $68,789.63 in May 2022.
Due to Fear, Uncertainty, and Doubt (FUD)
In the past few days, over 1 million Bitcoin (BTC) had been sold. This selling pressure is due to the recently increased rate by the United States Federal Reserve. Traders and investors are trying to reduce the impact of the present market downtrend on their portfolios. If these negative sentiments continue, we should expect the price of Bitcoin to fall further.
Bitcoin's inability to hold support at $37,500
Traders have watched to see if Bitcoin could hold support at about $37,500. However, in the past 24 hours at the time of time, it's minimum and maximum prices attained are $35,856.52 and $39,620.88 respectively. Analysts noted that this could plummet its price further to around $27,000 soon.
Bitcoin Fear and Greed Index of 22
Fear and Greed Index is an accumulation of volatility, volume/momentum, social trend, trends, survey, and dominance data. It ranges from zero to 100. For Bitcoin, it is presently 22, which is in the region of extreme fear. This shows that presently investors are worried about the market sentiments. Many investors could wait to see if the price would fall further before buying in other to have an increased quantity for the given amount they want to invest. If this trend is not changed, it will be impossible for Bitcoin to attain better psychological resistance soon.
General market trend
The Cryptocurrency market has been in a season of consolidation in recent months. Most recent gains are lost after a heavy reversal. This trend could lead to a crypto winter that would make the market dip further. Over $100 billion had been lost in the market. The market capitalization of Cryptocurrencies according to CoinMarketCap is around $1.65 trillion at the time of writing. This is against the $2.15 trillion value it attained in 2021 for the first time. This is about a 23.2% decrease irrespective of the new cryptocurrencies added in the market since then.
Conclusion
We can deduce that the present factors are not favorable for Bitcoin to surpass it's present all time high this month. It has to gain around 88.74% to do so.