Bitcoin (BTC) Price Recover: Another Bull Trap or a Fresh Rally, What’s Next?

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The cryptocurrency market bounced back with market capitalization surging 4 percent to $1.87 trillion. Major coins spiked after the U.S. Federal Reserve announced the first-ever interest rate hike since 2018. The largest cryptocurrency Bitcoin’s (BTC) price increased by 5 percent to reach $41K.

Bitcoin, Ethereum and Tether witness drop in whale transactions

Bitcoin’s price could fall to $30,000 as the blockchain network’s transaction volume declines. Over the last year, whale transactions on Ethereum and Tether have decreased as huge wallet investors wait out geopolitical events.

Since 2021, large wallet transactions for Bitcoin, Ethereum, and Tether have decreased. According to Santiment, a crypto intelligence platform, transactions for $100,000 or more have been steadily declining, reaching their lowest point in a year.

Though some analysts say that a low volume of large-value transactions does not always herald the start of a bear market, falling interest from whales in Bitcoin, Ethereum, and Tether suggests that big players are waiting for more news on the Russian-Ukrainian conflict.

Bitcoin supporters feel there’s a chance the price may drop to $30,000, which would be a significant loss. The BTC Price has mostly remained unaltered. Bitcoin is trapped in a narrow range, moving sideways. Analysts are negative on Bitcoin, claiming that the currency is structurally positioned for a decline to $30,000.

A similar pattern in the Bitcoin price chart was followed by a fall in June 2018. This suggests that analysts expect the price of Bitcoin to plummet once more. According to analysts, there is a confluence of major time cycles that will culminate this week, indicating a pessimistic prognosis for Bitcoin price.