Bitcoin and other crypto-currencies have been experiencing the longest bearish market movements since 2017 and 2018. Data shows that the crypto market lost $2 trillion in value since 2021’s massive rally. Even with these spikes in the months, prices tend to fluctuate towards the redlines.
Take, for example: Bitcoin pricesThe s continue to fluctuate. As of August 21, the price stands at $21,184.13 after losing 1.18% from its previous day’s value. Inflation news by the US Federal Reserve caused the market to fall. Bitcoin prices responded by falling almost 12% within three weeks to the news.
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An Analyst’s Forecast for Bitcoin Price
Bitcoin was trading at $21,400 on August 21. This suggests that traders are expecting a rebound similar to July’s. But even with the green lines on August 21, Peter Brandt, a veteran trader and analyst, tweeted that being bullish on it won’t be the right move. However, Brandt saw a potential pullback due to the crypto sentiment.
Brandt stated that the August 21 daily chart showed small gains in Bitcoin, with traders seeing two small green candles following six red candles. But that’s not a solid indication to go bullish on Bitcoin price. The market could still begin a selloff, pushing the BTC prices down once again. This is similar to July’s spike above $25,000
Brandt stated that although the ascending wedge of BTC prices on the chart was met, the price might fall further. The chart showed an ascending wedge breaking down, and Brandt predicted some bounces if support is maintained by the bulls. Brandt is concerned that Bitcoin’s price could drop if there’s no support from the bulls, which would lead to a breach in the reload zones.
Brandt isn’t the only one who sees bitcoin prices falling below $20k, according to other analysts. According to Michael Van De Poppe, BTC’s price might reach the $19.3k level while Ethereum’s priceMight drop as low as $1,400, compared to its current $1,570.43 price.Source: BTCUSD Price Chart from TradingView.com
Crypto Winter Effect on the Market
In affecting crypto price, the 2022 bearish trend is more than what was recorded in 2017 and 2018. The previous bear runs had been caused by the bursts of hype bubbles, but the movement in 2022 was caused by macros.
Since the start of this year, the US Federal Reserve has been closely monitoring inflation. Market shakes are caused by Feds increasing interest rates. This can lead to massive selling and losses of funds.
The crash of TerraUSD Luna, and the 22% drop of Nasdaq also affected market sentiment inside and outside of the crypto-space.
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However, recent data on inflation shows that it is slowing down. Analysts predict that the recovery of crypto markets will be slow.
Featured image taken from Pixabay. Chart from TradingView.com