Bitcoin (BTC) cryptocurrency rate corrected after a powerful dump and consolidated above the $ 38,000 mark. However, BTC/USD may drop in price to $ 31,000 by June 1 as a result of the next downward impulse.
On May 21, the BTC rate began to dump again. By Sunday, the asset fell by 25% – from $ 41,800 to $ 31,115 (Bitstamp data). On Monday, there was a reversal in the market, because the cryptocurrency was in the oversold zone. Bitcoin began to actively buy, and the coin went up in price by almost 29%.
Now the coin rate is hovering close to 23.6% Fib recorded during the dump from $ 64,900 to $ 30,069. If this barrier holds, then the value of BTC should increase to $ 43,000. Otherwise, a downward movement towards $ 31,000 will appear. according to the EMA Ribbon indicator, BTC may rise in price up to $ 40,500.
BTC has dropped 54% from its all-time high on April 14, so there should be no doubt that the bull run is over. In order to develop a trading strategy for the next 11 months, it is worth drawing an analogy with the dynamics of changes in the rate of an asset in 2018. Three years ago, the value of BTC collapsed by 85% in almost 12 months. In this regard, by April 2022, the coin may fall in price to $ 10,000.
The Fibonacci correction, taking into account the dump from $ 64,900 to $ 10,000, indicates that the Bitcoin rate bounced from the 38.2% level ($ 31,000) and exceeded the 50% level ($ 37,500). Thus, the value of the coin could rise to $ 43,800 before the next round of the bearish trend. However, in 2018, the BTC rate did not reach 61.8% after falling to 38.2%. Therefore, betting on the Bitcoin price rise to $ 43,800 carries a high risk.
Optimal tactics for the medium term include two points:
The development of this scenario of the development of events should take 22 days. If successful, the profit will reach 61%.
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