With the eye-catching events that contributed to the crypto space's precipitous decline, the year 2022 can be regarded as one of the worst ever. The forthcoming trend left many market players perplexed, so numerous external factors like the US CPI rate, inflation rates, interest rates, etc. had a significant impact on the cryptocurrency markets. Also, the recent turbulence in the US banking sector was to Bitcoin's greatest advantage.
The fact that the price of bitcoin increased dramatically while the price of the other altcoins maintained a modest trend shows that traders have switched their attention from the other altcoins to Bitcoin. From only $15 billion in January to as much as $55 billion in March, the trade volume increased dramatically. So, it suggests that the price will continue to rise strongly even though the positive momentum looks to have peaked.
Short-term Bitcoin Price Analysis -
Given that it is trading along the upward trend line, the short-term outlook for the price of bitcoin appears to be very favourable.
As of right now, the price is trading along the trend line from the opening of trading, indicating a challenging accumulation that could be followed by a bullish breakout.
But, since the last trading day, the volume has drastically decreased, which may slow the rally's pace.
As a result, it appears that the price is in a pivotal phase, where a breakout might push it towards the resistance zone above $28,500, while a breakdown could push it closer to $26,000.
Long-Term Study of the Bitcoin Price -
Long-term price trends for bitcoin are optimistic, with a potential for a bullish breakthrough to occur soon.
Before launching a new bullish wave, the price is likely to test the temporary support at $26,975 while consolidating near the previously acquired levels.
If the price fails to recover at this point, it might plunge sharply to the lower support region between $24,300 and $24,800.
Otherwise, a strong comeback might push prices up towards the trend line, which is now trading very close to $30,000.
Bitcoin On-Chain Overview
• The hash rate has soared high to mark a new ATH which is around 399 TH/s.
• The rise in the active address increases the volatility which further impacts the price positively.
• The demand for the token decreases as platform liquidity rises; as a result, the price may fall at this point due to the coiling selling volume.
As the bitcoin platform liquidity increases, the demand for it decreases, and as a result, the price may to hit the interim resistance beyond $30,000 any time from now.
Source - https://coinpedia.org/price-prediction/bitcoin-price-prediction/