The cryptocurrency market is experiencing a significant correction, and Bitcoin (BTC) is leading the trend. The price of BTC has fallen below $28,000, and experts predict that there could be further declines in the near future.
The cryptocurrency has been struggling to stay above $30,000 for several weeks, but has been unable to do so. The latest drop has been driven by a number of factors, including rising gas rates, which has raised concerns in the cryptocurrency community.
Meanwhile, some cryptocurrencies are proving surprisingly resilient to the market’s downtrend. Lido (LDO) and Bitcoin Cash (BCH) are two of the cryptocurrencies that have experienced a surge in value over the past 24 hours. Lido has recorded a 7% increase, while BCH has experienced a 4.5% increase.
Despite these bullish movements, investors remain concerned about the overall bearish market trend. Experts predict that the price of BTC could fall further, with some predictions suggesting it could drop below $20,000.
According to analyst Michaël van de Poppe, Bitcoin may be setting up for a further drop to the $22,000 to $24,000 level, while Ethereum could fall to $1,400.
What are the causes of this decline?
Increasing gas rates are raising concerns, with some analysts believing that this could be a sign of a bubble in the cryptocurrency market. Gas rates have skyrocketed in recent weeks, leading to network congestion and a slowdown in trading activity.
Overall, the cryptocurrency market remains volatile and difficult to predict. Although some cryptocurrencies are proving surprisingly resilient, investors should exercise caution when trading.
In the meantime, this may be a very important week as to whether the price of the leading cryptocurrency can regain the $30,000 level or if it will eventually plummet dramatically. As key U.S. data will be published in this week, such as inflation data, which will happen tomorrow, Wednesday. And it can have a significant effect on the market, as it has already happened on other occasions. Let’s keep an eye on what happens!