Bitcoin price has retraced the $22,000 level, but pending regulatory action against stablecoins and today’s CPI report are in the crosshairs of many investors. After Bitcoin’s recovery, has the crash been canceled or will losses continue to be seen in the coming weeks?
After twenty days of holding the support of USD 22,500, the price of Bitcoin (BTC) finally broke out on February 9. Bulls had pinned their hopes on a sustained rally, but this has been replaced by a narrow trading range with resistance at $22,000.
The downtrend is even more worrisome, considering that the S&P 500 is trading near its highest level in six months, while the broader cryptocurrency market continues to correct.
The Bitcoin price has risen above the $22,000 mark again in the past few hours. Previously, the price fell from over $23,000 to $21,500. As a result, there was a threat of a bigger fall or even a crash.
The Bitcoin price registered a strong increase in January. After rising from $16,500 to over $23,000, the price had to dip below $22,000 in recent days. The course has lost more than 5 percent in value in recent days.
In the last 24 hours, however, the price of Bitcoin has risen again to a value of more than $22,000. With this increase, the fall of the last few days was stopped, and the price was able to recover by a small percentage.
Has Bitcoin’s Fall Stopped Now?
With the increase in the last hours, the downward trend of the last days has stopped for the moment. It looked like the market could see another big drop in the next few days. Bitcoin price was on its way to undercut the $20,000 mark, which could trigger another price crash.
With the rallies of the last few hours, another dip or crash may have been delayed a bit. There is also a possibility that the market will continue to go higher for the next few days and that the Bitcoin price may even attack the resistance at $23,000 again.
Will Bitcoin Price Drop Below $20,000 Soon?
It is preferable to assume that the price of Bitcoin could drop below the $20,000 mark again in the coming days or weeks. Such losses are possible because the Bitcoin price appears to be too high at the moment given the circumstances.
Deep down there are some factors that have a negative influence. The SEC fined Coinbase and is now investigating the Paxos platform for offering BUSD. Illegal stock trading is said to be present again. Furthermore, there are still rumors about the Digital Currency Group, whose failure could even push the price of Bitcoin below $15,000.
By Audy Castaneda
