The Bitcoin price has not been able to rise much in recent days. The price recently dipped back below $24,000 after failed attempts to break the overhead resistance at $25,000.
The Bitcoin price fell again last night. From just under $24,000, it was back down to $23,000. It was the second big drop in the price of Bitcoin in just a few days. The price was about to break the $25,000 resistance.
After a slight recovery to $23,500, just below the $24,000 mark, the price fell sharply again yesterday. Bitcoin fell back to $23,100 from $23,900. In general, the price of Bitcoin has shown a slight downward trend in recent days.
Is This the Expected Market Correction?
In the last few days, there has been talk about the fact that the market could correct itself again, after the price of Bitcoin had risen towards $25,000. There were some factors that have favored such a drop in prices:
First, Since the resistance at $25,000 failed several times, it is possible that the probability of a correction increased.
Second, Bitcoin’s rise above $24,000 occurred at a time when the market situation spoke more of a bearish move (barely any movement in stocks, US dollar strengthening).
Currently, it looks like this is the overdue fix. The Bitcoin crash, which has also been predicted in recent weeks, could come, while it seems increasingly unlikely over time.
Bitcoin Price Drops Below $20,000?
The Bitcoin price fell between 3 and 4 percent in the last few days. This is still a long way from a Bitcoin crash. However, a drop towards $20,000 may be seen again.
Forex markets and leverage trading could ensure that speculative selling will resume. That could well push the price of Bitcoin to $20,000. However, the longer-term price action makes it very likely that we will no longer go towards the $15,000 low, and that the price will move closer to $30,000 over the medium term.
It should be remembered that last June, when the price of Bitcoin also fell below $20,000, Cesare Fracassi, a professor of finance at the University of Texas at Austin and who heads the school’s Blockchain Initiative, thinks that the fall of bitcoin by below the psychological threshold is nothing to write home about. Instead, he said back then, the focus should be on recent news about lending platforms.
All in all, despite their fluctuations in the market, cryptocurrencies spark interest as alternatives to deal with a world economy that faces various challenges such as inflation, the Russo-Ukrainian war, the impact on supply chains due to the coronavirus pandemic, and other elements. It is worth considering, though, that none of the cryptocurrencies that exist today are backed by any monetary authority, so they are not regulated, do not guarantee protection or security to those who use them, and are highly risky investments.
By Audy Castaneda
