Anyone who bought Bitcoin or Ethereum just a year ago is clearly currently in the red. BTC / USD is currently down 20 percent year-on-year between 2022 and 2021, while ETH / USD is down nearly 17 percent.
It looks even worse for investors who came in at the peak. Figures from coinmarketcap.com show the price of Bitcoin minus 57 percent from the all-time high of $ 69,000 on November 10, 2021. For the price of Ethereum, the correction from the top at $ 4,867 is still slightly higher at 60 percent.
Symmetric Triangle: BTC at $ 24,000 or $ 35,000?
So at first glance, these are not the best times to buy Bitcoin and Ethereum. But is it really like that? Or is it not the opportunity to get the best cryptocurrencies as cheap as it has not been for a long time and may not be again in the future, especially after the major correction? What else can investors expect from the crypto market and especially from the best coins in 2022? Assessment.
Technical analysis of the courses is worth forecasting. Looking at the 1 hour chart of BTC / USD, it is possible to see that the price is in a symmetrical triangle from 9 May. Bitcoin has tested the resistance and support levels of the multiple pattern. If it is a valid formation, an outbreak can be expected by 29 May at the latest.
According to technical analysis, since the price of bitcoin created the pattern out of a downtrend, while the symmetric triangle is essentially a neutral pattern, a downside correction is more likely. The technical price target could take BTC / USD to the level of $ 24,000 and at the same time a new annual low. On the other hand, opening the other side would put prices of $ 35,000 within reach in the short term. Experienced Bitcoin traders could profit from both price movements. After all, 17 percent is a potential course change.
Opportunity for traders: ETH / USD could show 30 percent move soon
On the Ethereum chart, the 1-hour candles also display a symmetrical triangle. Here, the bearish price target is around $ 1,500. So the Ethereum course could test the all-time high from the 2018 bull market as an important support mark. On the other hand, a bullish breakout could put ETH / USD around $ 2,400. The potential price movement therefore indicates even greater volatility than BTC. It looks like there could be a profit or loss of about 30 percent in the coming days.
The hourly candle analysis is not only relevant for short-term price trends, but the direction may also give clues as to whether the bear market will continue in 2022 and Ethereum and Bitcoin buyers will have to be expecting even lower prices.
How will Tesla react if the price of Bitcoin continues to fall?
The most important level of support for Bitcoin is arguably $ 20,000. While the course is still much higher than at present, the major corrections over the past few months show just how fast things can go. At the latest at 20,000 dollars, a huge resistance can be expected from the bulls, since a very large number of orders have been placed in this area.
Just imagine what impact such a mega-correction could have on the entire crypto market. Because big institutional investors like Tesla and MicroStrategy, which have invested billions of dollars in Bitcoin, are suddenly in a huge loss zone. This could scare investors and, for example, also affect Tesla’s shares, which, like almost all American tech stocks, are currently under pressure and have had to post high losses in recent months. .
– Michael Saylor⚡️ (@saylor) May 25, 2022
Currently, Tesla and MircoStrategy’s investments are still at a break – even point. While MicroSstrategy bought its first BTC for $ 10,000, it increased the average purchase price to about $ 30,000 through additional purchases, for example in the $ 50,000 price range. Elon Musk with Tesla entered the market at a similar price. The (unrealized) profits of 100 percent and more, recorded by corporations with their Bitcoin investment just over half a year ago, are far off.
From the point of view of Bitcoin investors, one can only hope that there will not be another major correction. Because this could be a complete endurance test for the market. This should indicate whether the big players will still stand with their billion dollar investments even if they slip deep into the red.
The sale of their bitcoin holdings could lead to price volatility and reduce the entire crypto market for much longer. Because it would probably destroy the confidence of many small investors in their investments if, for example, Tesla announced that it would sell its bitcoins. Market panic reactions are likely to be inevitable then.
Will the police return anytime soon?
However, this is still only the worst case scenario for Bitcoin and Ethereum buyers and there are also good reasons that the bottom could be reached (soon) already and the bulls could show strength again. If things break out of the above formation, this would be an important first signal. So the chances are not so bad that Bitcoin could create a bullish double bottom considering the correction from summer 2021.
While BTC was already trading lower in May 2022 than it was in May 2021, it is only a peak on the larger time frames that do not need to be overvalued. The formation of W could, at best, take bitcoin to a price target of more than $ 100,000 over the next few months or years. However, there is still a long way to go and to achieve that goal, Bitcoin would have to exceed the record high of $ 69,000. Given the current mood in the financial markets and the global political situation with high inflation and rising interest rates, it takes a lot of optimism to expect a new all – time high for BTC or ETH as early as 2022.
Forecast: Ethereum rises 100 percent in a year
Investors may need to be more patient here. Analysts at Wallet Investor are already expecting a strong recovery for Bitcoin and Ethereum in the coming months. A price increase of around 65 per cent is expected for BTC over the next 12 months. That could push Bitcoin back into the $ 50,000 range. The expected price target for the next 5 years is worth just under $ 130,000.
The outlook for Ethereum is even more bullish. Here, analysts expect the current ETH price to double within a year. And by 2027, the price is expected to rise to more than $ 11,000. That is a growth of about 500 percent.