Key facts:
Bitcoin surpassed USD 31,000, a figure that it had not touched for fourteen days.
Analysts maintain conflicting positions on the future of the price.
The price of bitcoin (BTC) managed to exceed USD 31,000 on Monday night, a figure that had not been reached for fourteen days. The move reflects an increase in the strength of demand for the cryptocurrency. However, it does not seem to be enough at the moment for it to resume its upward trend, according to the eyes of some specialists.
Cryptocurrency analyst Alan Ramírez recommended Traders to be careful because he sees that the structure of bitcoin seems to be incomplete. Don’t think BTC price has bottomed out yet. That is to say, he sees that his minimum price for this season has not arrived.
“There is a very high probability that BTC will soon drop to the $22,000 or $23,000 zone to bottom out the market,” he said via Twitter. According to his projection, the cryptocurrency could be ending its downtrend between July and August.
His perception is similar to the predictions given last week on CriptoNoticias by investment specialist Josh Olszewicz, who estimates that bitcoin will bottom out in the third or fourth quarter of 2022. The analyst does not rule out the possibility that the bear market will continue until next year.
Not all specialists see this situation in the same way. Against the tide of bearish predictions, the crypto enthusiast ShibaLatam transmitted this Tuesday, May 31, a more positive analysis of the market.
He argued that the fact that bitcoin has held above $31,000 and even hit $32,120 a few minutes before midnight makes you think that its price could continue to rise.
“Bitcoin rejects $32,000, but not hard,” he noted. Which is why he thinks it could be a bit of a setback to continue with a raise. Such a move would imply a break in the bear market it has been in lately.
Bitcoin must maintain a higher floor to reactivate the rise, believes specialist
Bitcoin has been in a downtrend since the all-time high it hit in November 2021. Above all, during the last eight weeks, for the first time in history, it has made losses consecutively. This behavior shows that the strength of demand has been weak in this period.
To see a breakout in this BTC bear market, the analyst of the digital assets company GlobalBlock, Marcus Sotirou, considers that a higher floor should be established. “Needs to hold the $29,300 level on a retest to suggest a continuation to the upside,” the analyst commented. Otherwise, he perceives that the bear market will continue.
For the last almost three weeks, following the consolidation of the market after the collapse of LUNA and UST, the floor or minimum price of bitcoin has been in the line of USD 28,000. Although since Monday it has remained above that range going from the $29,000 line to $31,000.
In the event that the price does not fall back to the USD 28,000 range in the coming days, we would be facing a new higher floor for bitcoin. Something that, according to Sotirou, would symbolize a possible continuation of the upward trend, so we will have to see how the market behaves soon.