A Bleak Short-Term Forecast for Bitcoin

The entire month of May has been an anxiety-inducing affair for Bitcoin traders and for the cryptocurrency markets overall. At a time when millions of vaccinated Americans were getting ready to enjoy Memorial Day weekend, market analysts were wondering if Bitcoin was closer to returning to a $40K line of resistance, or if bearish activity would push it further down and closer to $30K.

A small group of analysts and market observers believe that the worst is still to come for Bitcoin traders. These individuals think that we have yet to see the bottom of BTC/USD, and they also feel as if the market could go throug yet another major correction.

On May 7th, however, the news that Bitcoin's price could drop to a five-year low was met with widespread speculation on whether it could be a sign of things to come for the entire digital currency market. Institutional investors may have already taken their eyes off the ball, with one Bitcoin analyst stating that she does not see much of an upside" for Bitcoin during the next couple of weeks, which means that traders could either start selling off or either hope for the best by staying in the market.

Various market insiders have spoken to Bitcoin experts and industry observers, and among them, one individual called the recent counter-rally the worst pricing event since 2016. There seems to be no big picture to paint because fundamentals are lacking. Another Bitcoin expert said that if the latest price uptick isn't enough, that it also won't be the last drop of Bitcoin prices.

Another Bitcoin expert said that this price dip doesn't appear to be over yet, but that's likely only a matter of time. At the Chicago Mercantile Exchange, BTC futures were trading at sharply lower volumes ahead of Memorial Day weekend, and quite a few of the newer contracts written did not inspire confidence with regard to a major bounce in the near future. Volatility may taper off over the next few weeks, but it may return with a vengeance once opportunistic traders believe that a bottom has been reached.