The Bitcoin halving that took place on May 12 was supposed to send the price of the leading cryptocurrency flying. The opinions on that matter were very divided. While some experts and analysts believed that it will happen in the short term, others were not so optimistic. After a week of positive sentiment and a few attempts at testing the $10K level, Bitcoin’s price was caught in a whirlwind again, falling back below $9,000.
Many are concerned by the latest developments as bearish sentiment grows over the price. The price is caught between key support levels which could result in potential short-term problems. If Bitcoin doesn’t reclaim the $9K level soon, bears will return and spoil everything that has been going well so far.
No Good News
Bitcoin’s price is losing altitude once again and it doesn’t spell good news for the leading cryptocurrency. While everyone was expecting the price to climb back to the $10K level it reached in February before the COVID-19 pandemic, the latest price drop shows that such a thing is currently impossible.
What’s more, Bitcoin will be stuck in a bearish market once again if it doesn’t reclaim the $9K support level. That would be a serious blow to a flourishing market that stood its ground well amidst the pandemic.
Investor sentiment is quickly turning bearish. Bitcoin’s short-term price is in trouble as small investors look to be buying. Both the daily candle and declining channel trendline show that bulls and bears are fighting for control over Bitcoin’s price. If it doesn’t get past $9K, the latter might win.
The popular Crypto Fear & Greed index shows fear at the moment, once again proving that investor sentiment has turned bearish. Just last week, investors believed that Bitcoin could jump over the $10K hurdle with ease seeing how the price bounced up and down the $9K thread. After the price closed last week below the previously-ascending channel, though, the sentiment turned around instantly.
In order to stay on its feet, Bitcoin would need to close above the 20-day moving average and reclaim the $9,000 support. An encouraging development could be considered if the leading cryptocurrency closes above the 20-day MA. At the moment, it has been struggling to do so, yet you never know with cryptocurrencies.
A Major Bull Run Inevitable?
Mike Alfred, CEO of crypto market analytics company Digital Assets Data, says that a major bull run is inevitable for the leading cryptocurrency. Alfred fully expects this to unfold following mainstream interest and government economic measures.
The DAD CEO believes that government efforts around the world could spark a fresh bull run for Bitcoin’s price. He based his belief on government financial measures and improved crypto infrastructure. Although the current sentiment does not promise anything great, Alfred believes it’s just temporary.
Uncertainty surrounding fiat currencies could re-ignite crypto interest and that would be amazing for Bitcoin’s price. It remains to be seen if his optimistic views come into fruition.