After a steep fall, is BTC gearing up for a climb?
Halfway into 2022 and now it’s certain – that nothing is certain! Historically, Bitcoin gaining dominance amid underperforming altcoins has indicated a general lack of interest in trading riskier assets. Phemex, a Singapore-based crypto trading platform, understands the risks involved in trading cryptocurrencies and lives up to its commitment to bringing quality projects to its community and providing a safe space for crypto trading.
With its community of over 5 million traders, the crypto-derivatives platform processes over $10 billion worth of digital asset transactions each day. Since the recent catastrophic crash, Bitcoin regained the $30,000 level in May 2022. Some analysts opine that the last bearish movement was short-lived and that BTC may face further downside pressure in time. Others believe Bitcoin is just getting started.
Bitcoin’s market performance
Cryptocurrency markets are notoriously volatile, and the last few months have made this more evident than ever. According to metrics from TradingView technical analysis currently presents 14 metrics suggesting a ‘strong sell’ signal. Coincodex shows a mere 11% bullish sentiment, and despite BTC reclaiming its $30k benchmark, the market is clearly on a downswing.
Analysts say momentum remains negative. Bitcoin’s is swinging, and according to InvesTech, the cryptocurrency is in a falling trend in the medium to long term, with an overall negative sentiment surrounding the digital asset. However, it isn’t all gloom and doom.
Where is Bitcoin headed?
Digital Coin Price forecasts that BTC will rise back up to the $64k mark this year, projecting a potential scenario of Bitcoin crossing the 100k mark in the next few years. JPMorgan also made news headlines recently with its long-term $150,000 price prediction for Bitcoin, which would put the cryptocurrency’s market capitalization on par with gold’s.
According to experts, buyers are accumulating BTC, and if bulls manage to keep prices above $32,000, analysts believe prices could continue upward to $34,000 by the end of June. This year also marks the half-way point to the next Bitcoin supply-rate halving, an event often accompanied by rising prices.
Critics of this notion point to the Efficient Market Hypothesis, which claims all publicly available data is priced in. However, mining requirements will only rise with time, and with a dwindling supply rate, miners will inevitably start selling higher to cover the rising costs.
Late last year, Bitcoin also experienced its biggest upgrade since Segregated Witness (SegWit). Dubbed ‘Taproot’, the upgrade enables the network to batch signatures and transactions together, making transaction verification much more efficient. Besides helping the network scale to accommodate more transactions, this could also be the first step towards bringing smart contracts to Bitcoin.
The bottom line
Cryptocurrency trading has evolved from a small market to a billion-dollar international industry. With the increasing popularity of Bitcoin, many investors are wondering if it is the right time to invest in Bitcoin. While the short-term prospects may not be very encouraging, the long-term outlook seems to be quite positive.
Phemex is at the forefront of this industry and is constantly innovating to make crypto trading more accessible and user-friendly. The platform offers a wide range of features from spot trading to earning interest on stablecoin deposits. The exchange is committed to providing a safe haven for crypto trading, and will continue to list quality projects that have the potential to change the industry’s landscape.