Bitcoin Market Languishes Sideways: Impending Hyperbitcoinization and the Impact on Cryptocurrency Forecast - COINTURK NEWS
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Bitcoin Market Languishes Sideways: Impending Hyperbitcoinization and the Impact on Cryptocurrency Forecast

10:40 am (199 days ago)
May 20, 2023

The horizontal journey of Bitcoin‘s value continues to provide a somber reminder of the challenges that bear markets can present. So, what’s the forecast for cryptocurrencies over the next two days? Trading volumes have dipped to the level of $30 billion even on weekdays, figures that were not frequently witnessed even on weekends. This implies a potentially higher risk of volatility during the lower volume weekends. 


Despite the short-term uncertainty surrounding the king of cryptocurrencies, Bitcoin’s long-term trend seems to maintain its bullish inclination. Four-year cycles suggest that new peaks will be observed within the next year. Moreover, Blockstream CEO and co-founder Adam Back draws attention to a more significant phenomenon. According to him, “hyperbitcoinization” is imminent. 

This anticipation will increase the demand for Bitcoin, thereby leading to an elevation in its price. Back notes a consistent rise in the number of wallets with high BTC investments. If this trend persists, obtaining larger quantities of Bitcoin could become significantly more expensive within a few years. 

What’s Next for Cryptocurrencies

Bulls attempted to push the price back into a symmetric triangle formation on May 17th, but bears fiercely defended their ground, leading to a Bitcoin drop on May 18th. The decreasing 20-day exponential moving average ($27,590) and the relative strength index (RSI) in the negative zone suggest that the price decline may continue over the weekend. 

However, there’s a problem. Bears can’t keep the price above $26,500. Despite the lack of market volume and negative sentiment, the inability of sellers to close below this level brings a flicker of hope. Those looking for a bearish position for BTC would like to see a daily close below this level. If this happens over the weekend, sellers could instill the necessary fear for a new bottom. 

In a reverse scenario, bulls viewing the dwindling volumes as an opportunity may aim for $28,412 with closures above the $27,590 resistance. A break above the triangle could turn the tables in favor of the bulls. 

For now, most investors are waiting for a definite break from either the support or resistance levels. This breakout will dictate the direction of the price. 

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