Everything to Know in Bitcoin This Week
This week’s World Economic Forum brings a dose of realism to Bitcoin, and analysts continue to predict a new BTC price decline. Bitcoin (BTC) is off to a better start this week than most, as bulls avoid significant losses heading into the weekly close.
Despite remaining closely correlated with weakening stock markets, the largest cryptocurrency is defending $30,000 on May 23 and aiming for the top of its post-Terra (LUNA) trading range.
What might happen in the next several days? When it comes to BTC price action, Cointelegraph outlines various aspects to consider.
In a welcome change from recent weeks, Bitcoin managed to gain ground following the weekly close on May 23.
Despite securing a record eighth weekly red candle in a row, the lack of breakdown allowed BTC/USD to keep $30,000.
Filbfilb, a co-founder of trading platform DecenTrader and long-time market commentator, stated late last week that it was time to admit that the most prominent cryptocurrency was in a bear market. Meanwhile, regardless of the strength of $30,000 this week, the popular Twitter account IncomeSharks stated that there should be relief before any potential series reversal.
The World Economic Forum’s first in-person annual meeting since the commencement of the COVID-19 pandemic is the macro trigger of the week. Markets braced for potential volatility after the economic elite’s upcoming statements in Davos, Switzerland, from May 22 to May 26.
This year will most likely be no different. One month ago, the WEF issued a video advocating that Bitcoin’s proof-of-work (PoW) algorithm should change to proof-of-stake (PoS) for environmental reasons.
According to the most recent predictions, Bitcoin’s network fundamentals will now be adjusted to compensate for the trip to $30,000.
The difficulty reflects shifting dynamics among miners; it will drop by approximately 3.3 per cent at its subsequent automated readjustment this week. The change will be minor compared to other changes; however, it will be the most significant negative shift since July 2021. The explanation is simple: Bitcoin’s price action is not only declining but also threatening miners’ profitability.
