Bitcoin Crashes with Stock Markets | What Minus Now Still Threatens

Bitcoin has just gone through a rough patch. A real hard blow, as its value is currently scraping just above $31,000.

Is this the same thing we saw last year, or is it just a brief scare? Analysts are not entirely sure, as many things have changed although those now using an OKX API may have a golden opportunity.

In view of the current mood, which changes almost daily, including enormous price fluctuations, even analysts are currently finding it difficult to derive reliable hypotheses and strategies for future price developments on the basis of price trends and trading volumes.

Nevertheless, a look at the prices of the past months reveals certain patterns and striking price lines that could be tested once again in the coming days and weeks.

Psychological Red Lines

The price correction from May to July of the previous year serves as an even more psychologically important red line. As is well known, Bitcoin, and with it the entire crypto market, plummeted to an interim level of $28,500 after an all-time high of just under $65,000.

This price region is significant insofar as Bitcoin already reached a bottom in a smaller price correction at the beginning of 2021.

Given the enormous uncertainty on the financial markets, investors have to expect that this price level will also be tested again.

Anyone who has been involved with cryptocurrencies for a while knows that this would result in enormous price losses, especially for other cryptocurrencies, the so-called altcoins. They are considered far riskier than Bitcoin or Ethereum simply because of their lower market capitalization.

However, if the price region below $30,000 is also lost, Bitcoin owners will need particularly strong nerves. Because then the former all-time high of Bitcoin from December 2017, which gave the largest cryptocurrency a rally to just below 20,000 dollars, suddenly comes back into the picture.

Since the price development hardly took a breather during the rise at the turn of the year 2020/21, there are no corresponding price markers where Bitcoin could stabilize on the way down.

Conflicting Signals

Even though the outlook for cryptocurrencies, like other risk assets, seems rather gloomy at the moment, there are some parameters that paint an opposite picture.

According to blockchain analyses, the number of wallets with bitcoin in them is still on the rise despite the price corrections.

Long-term holders in particular are likely to continue to have great confidence that the cryptocurrency will sooner or later recover and conquer a new all-time high.

Another parameter for the market is the volume of Bitcoin available on crypto exchanges. If this rises, it usually means that big players in the market are taking their crypto assets from secure external storage solutions to sell them on crypto platforms.

If the volume of freely available coins drops, it indicates that large investors are holding their Bitcoin and waiting for better times.

Currently, this is exactly the case. Although the bitcoin price is far from the all-time high of $67,000, the Bitcoin freely available on crypto exchanges continues to decrease.

According to analysts, this is a sign that female investors with purchasing power are more likely to buy Bitcoin and stash it in their external wallets during the current price corrections than they are to herald the total crash and demise of the cryptocurrency.

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