Bitcoin is getting a dose of reality this week as the World Economic Forum convenes, and analysts still favor a fresh BTC price drop.
Bitcoin (BTC) is off to a better start than most this week as bulls avoid serious losses into the weekly close.
Still heavily tied to declining stock markets, the largest cryptocurrency is nonetheless defending $30,000 on May 23 and eyeing the top of its post-Terra (LUNA) trading range.
While there are no signs of an impending miracle price recovery, some are hoping that upside will feature before any form of reversion to a downtrend.
Macro conditions remain tenuous, and the week of the World Economic Forum’s (WEF) Annual Meeting is due to add fuel to the fire surrounding the tolerance of BTC.
Add to that the largest downward difficulty adjustment since last July and it becomes clearer that Bitcoin is battling for strength on multiple fronts.
What could happen in the coming days?
Cointelegraph presents several factors to keep in mind when it comes to BTC price action.
Bitcoin’s Price Nuke Is Still On The Table
In refreshing contrast to recent weeks, Bitcoin managed to show strength following the weekly close on May 23.
Despite still sealing a record eighth weekly red candle in a row, the lack of breakdown allowed BTC/USD to instead retain $30,000.
Given the overall picture with stocks correlation and monetary tightening forcing them down, not everyone was confident in the upside continuation of Bitcoin.
“My preferred Bitcoin scenario is a nuke straight to $22k before big bounce close to $40k,” popular Twitter trader Nebraskan Gooner told followers on May 23:
“This would provide the best opportunity for bear market bounce and catch a lot of people off guard. Good to monitor all scenarios especially with everyone being so confident of a bounce.”