This week, as the World Economic Forum gathers in Davos, Switzerland, Bitcoin is receiving a dose of reality, and some experts predict that the cryptocurrency’s value will continue to fall.
As the week progresses, Bitcoin (BTC) has had a better beginning than others, with bulls avoiding significant losses.
On May 23, despite being strongly linked to falling stock markets, the biggest cryptocurrency is defending $30,000 and looking toward the top of its post-Terra (LUNA) trading range.
While there aren’t any warning signals of a miraculous price rebound, some investors are holding out hope that gains would materialize before any resumption of the slump.
The global economy is still in a precarious position, and the week of the World Economic Forum’s (WEF) Annual Meeting is likely to increase tensions over the acceptance of BTC.
When you include in the greatest decrease in difficulty since July of last year, it’s evident that Bitcoin is fighting on numerous fronts.
Bitcoin’s Price Nuke Is Still On The Table
Bitcoin‘s gain after the weekly closure on May 23 was a welcome change from the previous several weeks.
As a result of the absence of a breakdown, BTC/USD was able to hold onto $30k despite closing a record eighth weekly red candle in a row.
Not everyone was convinced that Bitcoin’s upward trend would continue given the larger context of declining stock prices due to a link with monetary tightening.
A famous Twitter trader from Nebraska named Nebraskan Gooner informed his followers on May 23 that “my favourite Bitcoin scenario is a nuke straight to $22k before massive rebound close to $40k.”
If this were to happen, it would take a lot of people by surprise and provide the greatest chance for a bear market rebound. It’s a good idea to keep an eye on everything, particularly now that everyone is so sure of a rebound.