The hopes of Bitcoin price roaring again continue to fade as crypto continues to seesaw around the $20,000 price level. In today’s trading session, its price is down by less than a percentage point but looking highly likely to wipe off gains made during yesterday’s session.
The Bitcoin price drop has also been in tandem with other asset classes such as Stocks. For years, the cryptocurrency had been viewed by many as a hedge against the traditional financial sectors. However, the recent significant correlation between various asset classes and Bitcoin has raised risk for diversified investors.
Therefore, unlike the pre-pandemic period, where Bitcoin and the cryptocurrency industry as a whole showed no correlation with stocks and other asset classes, the current correlation has meant that investors are not flocking to invest in Bitcoin as a divestment strategy.
Bitcoin Price Prediction
Unfortunately, the current seesawing of Bitcoin around the $20,000 price level is poised to continue. Despite Bitcoin remaining resilient after multiple Federal Reserve rate hikes, the heightened volatility in the markets as a response to these rate hikes has also kept most investors away from it.
Therefore, my Bitcoin price prediction expects it to continue trading in a stable market. The prices will continue seesawing around the $20,000 price level for the next few trading sessions. However, In case of a trend is established, there is a high likelihood that it will be to the downside and not bullish.
This is partly due to the current correlation between Bitcoin and other asset classes, such as Stocks, whose macroeconomic data shows a likelihood they are set for a continued drop in the markets. The likelihood that we might see Bitcoin dropping below to hit the $17715 support level in the coming trading sessions remains high. However, should Bitcoin surge past the $20500 price level, then my sideways/bearish trend analysis will be invalidated.