There is evidence that a Bitcoin drop to $10,000 could be seen.
In the past few days, the price of Bitcoin first saw an increase, and then quickly experienced a stronger decline. But in the near future, the risk of a new low in 2022 is extremely high. There is even evidence that a Bitcoin drop to $10,000 could be seen. What are the signs of such an event?
The price of Bitcoin has experienced huge losses in 2022. In November 2021, Bitcoin was still at an all-time high of over $68,000. In recent months, Bitcoin has subsequently lost around 75 percent of its value, experiencing a prolonged fall in 2022.
Since the beginning of 2022, the loss is around 65 percent. The most losses were evident in the first half of 2022, when the Bitcoin price fell below $18,000 in mid-June, being the lowest point for the Bitcoin price in 2022 for a long time. It was only with the FTX crash in early November that Bitcoin was able to drop lower, and saw a dip below the $20,000 mark.
Why did Bitcoin Crash in 2022?
There was a combination of reasons that Bitcoin crashed in 2022:
Natural bear market correction: Bitcoin moves in typical cycles, which are determined by the halving. In 2021 we saw the peak of the bull market; in 2022, the start of the bear market. In the last phase, heavy casualties are now considered normal.
General economic situation: 2022 saw an inflationary crisis triggered by easy money policies. With the necessary interest rate hikes by the US Federal Reserve, riskier investments like cryptocurrencies are becoming less profitable.
Loss of Confidence: The FTX bankruptcy, in particular, once again reduced confidence in the crypto market, causing Bitcoin to fall further.
Why Bitcoin Could See a $10,000 Drop
Bitcoin’s drop to US$10,000 has been discussed as a bearish scenario for weeks and months. At the moment there are many factors that could make this possible:
First, due to the FTX block, trust in crypto exchanges and other crypto projects is low.
Second, Binance has come under fire after failing to audit its financial situation.
Third, key interest rates were raised again.
Fourth, Bitcoin price was only able to break the $17,000 resistance for a short time, but it quickly pulled back. This could trigger a Bitcoin crash.
This projection is supported by Mark Mobius, co-founder of Mobius Capital Partners, who recently said that bitcoin is “not very far” from $10,000 now that it has broken through the $18,000 and $17,000 technical support levels.”
Therefore, the danger of a fall towards $10,000 is particularly high in the coming weeks. But in the medium term, the change in trend should already come in 2023.
By Audy Castaneda
