21.04.202213:16 Forex Analysis & Reviews: Bitcoin remains flat; analysts polarized on BTC outlook

At the close on Wednesday, BTC added 0.3%, approaching $41,400. At the time of writing the article, it was hovering at $41,810. Altcoins were unable to either rise or decline. So, ether sank by 0.3% and XRP lost 2.3%. Terra jumped by 3%.

In early April, bitcoin was trading lower than analysts had expected. The main reason was the escalating geopolitical situation and other negative fundamental factors. Over the past three weeks of this month, BTC has already fallen by more than 10%.

According to the results of the first quarter of 2022, BTC lost 1.5%. At the same time, March turned out to be a favorable month for the asset. It grew by 10%, logging an increase for the second month in a row.

In January, BTC shed more than 16%. In February, its price edged higher by 12%.

In November 2021, BTC reached an all-time high, soaring above $69,000. Since then, bitcoin has been declining steadily.

In 2021, its value almost doubled, surging to $46,200 from $28,900.

Let's discuss the current dynamic of the number one cryptocurrency. By the end of Wednesday's trading session, BTC had lost almost all morning gains due to a drop in the stock market. The Nasdaq Composite tumbled by 1.22%.

Earlier, analysts at Arkane Research stated that the correlation between BTC and tech stocks had peaked since July 2020.

Last week, institutional investors withdrew $97 million from crypto funds last week, according to a CoinShares report. Notably, the outflow has been taking place for the second week in a row. It could be the result of the recent profit-taking and reaction to the hawkish FOMC meeting minutes for April.

The high volatility of the digital market forces crypto enthusiasts to make the wildest predictions about the future trajectory of BTC. Analysts at Glassnote believe that bitcoin has already hit its bottom but it is still unable to break through the February range.

Another popular cryptanalyst, the co-founder of the BitMEX exchange, Arthur Hayes, reckons that by the end of the second quarter of this year, bitcoin could collapse to $30,000 amid a constant decline in the US Nasdaq Composite index.

Famous trader Peter Brandt predicted the return of BTC to a bullish trend no earlier than 2024. To justify his forecast, the analyst said that traditionally, it took about 33 months after the end of the previous rally to start a new one.

BTC has reached its historical high in November 2021. Thus, the next rally is likely to occur in May 2024. Investors took notice of Brandt's forecast because earlier he had already given an accurate outlook on the price of bitcoin in mid-2021.

At the same time, at the end of March, many analysts stated that traditionally, April is considered one of the best periods of the year for virtual assets. Over the past 11 years, BTC has increased 8 times this month and dropped only three times.