Recent price movements in Bitcoin and altcoins indicate a potential pullback, while analysts provide various forecasts.
Bitcoin Price Dynamics
Bitcoin failed to break above $109,588, prompting short-term buyers to take profits, resulting in a drop below $104,000 as of May 30. Concurrently, Bitcoin-related funds recorded a net outflow of $347 million, marking the first such event since May 13. Derive founder Nick Forster noted that Bitcoin is likely to enter a consolidation phase, which will be 'a healthy pause' before another significant upward movement.
Altcoin Price Predictions
In the near term, altcoins typically follow Bitcoin's movement and are likely to consolidate around immediate support levels. For example, Ether managed to break above the resistance level of $2,738 but could not hold it, leading to a decline to the uptrend line. It is crucial to monitor key levels that may stop the decline.
Overall Cryptocurrency Market
Despite the short-term price drop, many analysts remain optimistic about Bitcoin's long-term growth prospects. Some predict that Bitcoin could reach $200,000 by 2025. Simultaneously, there are opportunities for recovery among other altcoins like XRP and BNB, which are also working on rebounding.
The cryptocurrency market is currently under pressure, but long-term prospects remain promising. Investors are advised to closely monitor market changes.
