For the umpteenth time in the past month, Bitcoin has dropped under $30K. The critical support levels range between $25-$27,000 with investors looking for a bottom. However, it is hard to be found with such fluctuating prices. Bitcoin is choppier than ever at the $30,000 level, making it hard for investors to jump back in the market.
Price bounces are short-lived which means there’s a loss of buying strength. Loss of interest is an even worse problem. With the largest cryptocurrency failing to break over $30,000 after so many tries, many are wondering if there are bright lights on the horizon. Everything’s pointing to a weak momentum, although the highest RSI since March 2020 could indicate a price jump.
What Follows?
No one can really tell what’s next for Bitcoin. It is down 34% in price in 2022 so far and is currently in the mid to final stages of a bear market. That’s what some indicators are pointing at, but the price range right now can only be described as choppy and unreliable.
The sentiment remains bearish for sure. Analysts and fund managers are searching for a price trough hoping to recover from big losses. Rumors have it that short-term buyers have capitulated already, which points to the bear market slowing down. It will run its course for a while yet, but it’s on the way down and brighter future is ahead.
Currently trading at around $35,000, Bitcoin’s price in the past 24 hours has been a rollercoaster ride. Investors are constantly looking for a bottom to start investing, but it’s seemingly had to be found right now. Indicators are showing oversold on the RSI, and the situation could remain the same for a few more weeks. The good news in it all is that these indicators are strongest just before a price hike. This last happened in March 2020 and was followed by a bull run that took Bitcoin to new highs for the next year or so.
Altcoin Situation
With Bitcoin down, the other part of the market isn’t making waves. This weakness in crypto markets and failure to launch the UST stablecoin have resulted in decreased DeFi support. Morgan Stanley thinks tighter crypto regulation is coming, although systemic spillover risks to the fiat money economic system are to be expected.
With Bitcoin’s latest performance, the altcoin market is being dragged down. Those tiny daily gains mean nothing if they don’t last. With key crypto bills looking to be introduced in the USA and European Union, there’s not much hoe of a turnaround soon. The only hope analysts have is the oversold RSI that precedes price jumps.
Bitcoin hit a high of nearly $70,000 last November, but it’s all been downhill from there. The COVID pandemic and war in Ukraine have derailed its progress, even after initially doing great. A bear market is the current problem, and if experts are right that it’s nearing its final stages, we can only hope that Bitcoin hits record highs by the end of this year.