Are we seeing the death of cryptocurrencies? Prices have once again dropped in the past week, with Bitcoin sliding down to $18,000. That’s pretty much next to 2017 prices when the famous bubble burst. Many believe that there’s no going back from this. Prices will continue dropping until they flatline as many are selling off their crypto stocks and pro traders are avoiding leverage longs.
Maybe it’s a bit too early to call it the death of crypto, but things aren’t exactly great. To be honest, the current geopolitical climate and war are messing things up, and not just for crypto. It’s going to be a harsh and long winter considering the lack of energy, and it’s also going to be a very long crypto winter as it seems.
Traders Avoiding Leverage Longs
Bitcoin has nose-dived to its lowest point since mid-July. Pro traders are aware of this situation and remain very skeptical of a quick recovery. Price corrections are possible, but not nearly as big as many have thought. Early on September 6, there was a 2% price pump that saw Bitcoin jump to $20,000 all of a sudden, but it backfired quickly and the price slid further down.
Currently trading just over $18,000, Bitcoin’s volatility remains a big problem. Stock markets are crashing and further extending the bearish market. There’s no sign of bulls anywhere, even if there was a positive movement last month. It was all erased in the past week with crypto prices dropping left and right.
So, what’s on the horizon? Well, considering the outlook in the long run, things aren’t looking good. According to experts, Bitcoin’s daily range has narrowed down significantly. This may indicate that a massive capitulation is to follow. Bitcoin has been trading in a narrow range for a long time, and that’s precisely why experts believe it’ll capitulate. Which, of course, isn’t the news we or any trader wanted to hear.
Is this true? Yes, and experts have cited a couple of factors as evidence that traders are fighting hard to keep prices higher. First, Bitcoin has managed to avoid the selloff in the stock market, avoiding the downsize which was its kryptonite in the past. Second, the strengthening US Dollar has been on a climb, and it has given a lot of headwind to Bitcoin in the past. Obviously, that hasn’t happened now, which is why many believe a capitulation is coming.
Get Ready for a Long Winter
With autumn on our doorsteps and winter to follow soon, it’s obvious that things will get worse before they get better. If they get better. Many predict crypto prices to fall in the $10,000-$12,000 range, which will be a massive defeat for Bitcoin and crypto prices in general.
One thing is for sure. With the ongoing Russia-Ukraine war and gas prices sky-high, there will be no room for improvements on the crypto market. Worldwide legalization could help the price up, but since that’s not happening, we’re expecting prices to drop even more.