Will altcoins grow? What are the Bitcoin (BTC) price forecasts?


Bitcoin has been holding on to the critical support of $40,000 for several days and has so far started to recover in the markets. Most altcoins have turned green again. Although BTC has dropped from a high of $42,199, it still stands above the 41,500 resistance. So what awaits crypto investors in the near future? Will the recovery continue?

Risky Situation for Bitcoin (BTC)

The Arcane Research report urged investors to remember that Bitcoin’s 30-day correlation with tech stocks has grown to a level last seen in the summer of 2020. In fact, Bitcoin’s 30-day correlation with Nasdaq was 0.70. This means that problems in the technology sector have also affected the crypto market since the winter of last year. However, the report notes that such a high level of correlation is unlikely to last long.

On the other hand, Bitcoin’s correlation with gold has plummeted and is currently close to historic lows. The 30-day correlation has shifted to the area (-0.45).

Will altcoins grow?

The answer to the question “Will Bitcoin grow” is exactly the same as the answer to this question. Since the largest cryptocurrency pulls the entire market with it, its strong and stable balances will make altcoin investors smile. According to the TradingView Relative Volatility Index [RVI], volatility is at a positive level. This bodes well for those who want Bitcoin to turn current resistance levels into support.

The data from Santiment shows that the social volume of Bitcoin is being suppressed, as BTC is constantly fluctuating in the range of $38,000 to $42,000. If you look at transactions with whales above $100,000, they have been slowly declining since the end of March 2022. At the moment, the activity is in a downtrend.

However, current conditions may change soon after the news of the first Bitcoin ETF in Australia. It is hoped that this development will support the markets next week. The FOMC meeting and a possible rate hike will take place in the first week of May. At this meeting, where the Fed will now take a clearer position on reducing the balance sheet, the possibility of raising interest rates by 50 or even 75 basis points may put pressure on the market as the meeting date approaches. There is no retreat on the Russian side, and the conflicts that have escalated into global tension cause irreparable wounds to the world economy with the harsh sanctions of the Western alliance.

We do not know that global uncertainty, recession and even greater fear will negatively affect risk markets. Thus, investors in cryptocurrency need to act much more carefully.