The crypto market has seen some major setbacks in recent weeks, and the firstborn crypto has not been spared. BTC has been hit by the pangs of a dwindling market in recent weeks. Following its 2022 peak of $49k in late March, the asset has since seen a consistent downslide, leaving investors ambivalent about its next stop.
Following a consistent downslide, Bitcoin ended the month of March with a value of $46k after reaching a peak of $49k. Since then, the asset has steadily declined, thwarting investors who had hoped for a rebound from what was perceived to be a brief retracement.
BTC Has not Escaped the Challenges Facing the Crypto Market
The value of BTC has dropped 7.14 percent in the last week, with a 24-hour drop of 2.52 percent, leaving the asset at a trading value of $40,139 at press time.
The asset hit a low of $39.3k on April 11th, breaking the support level of $40k – the lowest it has been since mid-March. It closed that day with a value of $39.5k, rising to the $40k support level by the end of the next day, and has since been fluctuating between the $39k and $40k support zones.
With a value of 22 at press time, the crypto Fear and Greed Index (FGI) – one of the methods used to gauge market sentiment in the crypto space – now suggests “Extreme Fear.”
Some Analysts Remain Confident
Despite the difficulties that BTC and, by extension, the entire crypto space are facing, some analysts remain bullish, predicting that the market will make a significant rebound sooner than we expect.
While short-term holders have capitulated, most long-term holders have remained unmoved with reports of whales accumulating more BTC over time in this current market condition. Will Clemente, Lead Insights Analyst at Blockware Solutions, recently tweeted that BTC has entered the “zone of heavy opportunity (green)” based on data from blockchain data provider Glassnode.
He also mentioned that this is the longest time BTC has been in the zone, implying that the asset is more likely than ever to stage a comeback.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.