With this Bitcoin lunch, we give you an update on the live Bitcoin price and the prices of the top 25 crypto currencies. We also look back at the results of the past week. Then we look at what we can learn from the death cross that occurred this week. Finally, of course, we look ahead with the BTC expectations for the coming week.
We begin with the live Bitcoin price and the prices of the top 25 crypto currencies.
Live Bitcoin price and prices top 25 crypto coins rise
At the time of writing, the live Bitcoin price is quoting EUR 28,871.30 ($30,503.22). This is 1.03% higher than yesterday and 0.75% higher than during our Bitcoin lunch last Friday.
The prices of the top 25 crypto coins are also rising. Apart from a few stable coins, we only see green numbers. The biggest increase is currently at +4.94% for Avelanche (AVAX).
ROI: another negative week for the Bitcoin price and crypto prices
As usual on Monday, we look back at the results of the Bitcoin and top 25 crypto in the past week. These were for the eighth week in a row. With this, the crypto market set a negative record. Never before have they written continuous negative weekly results for so long in a row.
Nevertheless, there were crypto coins that recorded a profit in the past week. The biggest gain was with +6.86% for Tron (TRX). Overall, however, investors in the top 25 crypto had to record their losses. The hardest hit was last week for investors in Near Protocol (NEAR). This crypto fell 14.15%. Bitcoin lost 3.08%.
Such figures do not foresee much good for the monthly results. Consequently, the results are dismal. Again, Tron (TRX) is the exception that proves the rule with a return of +15.78% over 30 days. The biggest loss for the top 25 crypto in this period was also for Near Protocol (NEAR) at -59.90%. Bitcoin (BTC) posted a loss of 23.65% over 30 days.
On the site of Tradeincrypto.com you can analyze all results and all live crypto prices 24 hours a day.
Bitcoin formed a “death cross” this weekend. What does that mean?
This weekend, the Bitcoin formed what is known as a death cross. This means that the exponential moving average over 5o days was lower than the exponential moving average over 200 days. Our colleagues at Tradeincrypto.com are happy to explain the importance of moving averages for the BTC price.
In a historical analysis, analyst Rekt Capital charted when a death cross for Bitcoin previously formed and how prices reacted to it. First, we look at his chart. Then we see the analysis of the course of the BTC price before and after the formation of such a death cross.
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– #BTC drops -73% pre-Death Cross
– BTC drops extra -70% post-DC
– +1581% post-DC
– +141% post-DC
– ? post-DC
– Rekt Capital (@rektcapital) May 20, 2022
In addition to these tables, we see that there was also a death cross in January 2022. This one was formed 63 days after the price record. In contrast to the crosses of death in 2020 and 2021, a further price decline followed the January death cross (currently around 36%). Thus, the historical trend of further price declines after a death cross seems to be confirmed again. Between the formation of the penultimate cross and this cross was only 63 days, where in the past one saw a death cross 107 to 135 days after the peak price.
So if history repeats itself we are in for a hefty further fall in the price of Bitcoin. So it is high time for the forecast for the coming week.
Bitcoin price forecast week 21
Seeing what events are on the agenda for the coming week, it will be quite a feat to use that $30,000.00 as support throughout the week.
For example, at the WEF meeting in Davos, there are plans to present plans to encourage Bitcoin to switch to Proof of Stake as a validation method for Bitcoin. It is also now apparent that ECB President Lagarde is very critical of Bitcoin. Furthermore, we see that the mining difficulty will be reduced by 3.3%. We also see that interest in BTC continues to decline.
Finally, we see that next Friday (at 10 am Dutch time) the monthly options and weekly options will expire again, with the expectation that the bears will have an advantage.
As a positive counterbalance, the only thing that really stands out is the rise in the hash rate. With that, it is obvious to expect a rise in the BTC price before the beginning of the week, after which a downward trend may emerge after easing of the difficulty.
Expected Bitcoin price in week 21
As we saw last week, there remains room for Bitcoin to rise further as long as it trades above $30,000. So for now, this is the key price to follow.
Once the price shoots below that, sentiment can change quickly. How far the Bitcoin price will fall is the question. If analyst Rekt Capital is right, a sharp drop in the price cannot be ruled out. Taking into account historical declines, the picture looks like this:
price drop 43% after the death cross (same percentage as the drop after the November peak to the death cross in January): BTC price $22,700.
Price drop 50% after the death cross in January this year: Bitcoin price $18,000.
price drop 65%: bottom Bitcoin price $13,800.
price drop after death cross BTC 71%: bottom BTC price at $11,500. In this worst case scenario, Bitcoin loses more than 80% of its value since last November’s price record.
Incidentally, the major price declines are further in the past. At that time, the role of institutional investors was nonexistent or minimal. It is therefore to be expected that the price drop will not fall to its deepest level. In the market we therefore see support for the expectation that the price will first fall to $22,000. Of course, this does not mean that the bottom will be reached this week.
We can conclude that the market is tense. This combined with the volatile price development means that despite the positive morning, we see that the market is uncertain. Fortunately, even in an uncertain market there is room to limit losses or even make money.
Investing, but not just in crypto? Check out our price forecast!
If you are investing in or considering investing in assets other than Bitcoin/crypto, it is of course important to research possible returns on investments in value assets such as stocks, options, Forex, gold and/or oil. To help you with your own research, this week we have also prepared our price forecast for various popular investments. As usual, you can read this on our sister site MANNERS.nl.
Want to stay informed about the latest price developments?
You can always follow the developments yourself with our WANT crypto analyses or the background articles and previews on the crypto market and Bitcoin. Of course, you can also follow the live quotes 24 hours a day if you want to stay informed in real time. Are you interested in other investments besides crypto? Then our weekly Monday morning price forecast might be a reading tip. “Please note: We never give financial advice, so our contributions can’t be interpreted that way either. Always do your own research and decide on rational grounds if, when, what and how much you want to invest in.”