Bitcoin (BTC) Closed the Week Again with a Red candle, now even for the sixth week in a row, the longest since 2014. The fear in the cryptocurrency market continues to increase, and the sentiment is meanwhile very high. bearish to become. Investors are trying to aim for a bottom, but how far can the price fall?

Bitcoin price drops by 3%

The bitcoin price tapped last Thursday, shortly after the meeting of the Federal Open Market Committee (FOMC), just below $40,000. However, then bitcoin started to fall hard, along with the stock markets. The price came in around $34,500 yesterday and briefly dipped below $34,000 last night.

Bitcoin first made a small bounce back to $34,600, but that was short-lived. Bitcoin dropped towards $34,000 last night and made another big plunge by 4 a.m. This time, bitcoin touched a low of $33,200, almost as low as the dip at the end of January.

Bitcoin also came close to this low again this morning. Currently, the price is $33,650 on KuCoin and $32,000 on Bitvavo. Bitcoin is currently 3% in the min.

How deep is the bitcoin bottom?

How deep bitcoin will fall in the near future seems to depend mainly on where the so-called macro bottom is. If the downward trend on the stock markets continues, then bitcoin will most likely follow in the near term.

It is possible that bitcoin will soon find a bottom, because it succeeded around this price at the end of January. However, this time the fear is even higher and there is still a lack of retail volume so we don’t have a real rebound see.

Incidentally, the next American Consumer Price Index (CPI) will be published next Wednesday. How inflation can cause even more fear and volatility.

As bitcoin has broken through a critical support barrier, the price could potentially retest the area between $28,000 and $30,000, as it did last summer.

Opinions are strongly divided as to how deep bitcoin can still fall. This is also reflected in the following poll on Twitter. Currently, 28% hope we are already there, but almost 30% expect the price to fall below $32,000. 17% even expect bitcoin to fall below USD 28,000 and a whopping 26% fear a dip below USD 24,000.

Not everything is bearish for bitcoin

Despite this, not everything looks completely bearish. There is also positive on chain find dates. For example, the percentage of BTC that has not moved for at least a year is now at a all time high of 65%, a bullish sign in the long run.

The number also remains lung positions on Bitfinex still increasing:

Crypto Insiders Premium for bitcoin analytics

Do you want to learn more about trading crypto and analyzing prices? Join Crypto Insiders Premium and come and have a look for free for the first 30 days! Ask analysts questions, chat with our avid community, and receive technical and fundamental analysis daily.


Please enter your comment!
Please enter your name here