Crypto prices fell again this weekend. BTC hit all-time low in December 2020. The drops came after the same price moved only a month ago. The price of Bitcoin faced a challenging performance this year. After rising to an all-time price high of almost $70,000 last year, its price fell to nearly $20,000. It means that it fell by over 68 percent from its all-time price high. So now the question is should investors buy the Bitcoin dip? If you are looking for a secure Crypto trading platform, check Bit QS.
Why has Bitcoin dipped?
There are many reasons why the price of Bitcoin has fallen hard in the last few months.
Firstly Bitcoin crashed due to the falling fiscal monetary in the US. Unlike in 2020 and last year, the government of America has not declared any significant fiscal stimulus. A few of which ended in BTC.
Secondly, the price of Bitcoin fell due to the Federal Reserve’s actions. After keeping extremely low-interest rates for years, the Federal Reserve embraced a huge hawkish tone in 2022.
It increased interest rates by 225 basis points in 2022. It began decreasing its balance sheet.
In most times, risky assets tend to underperform in a time of high-interest rates. Even the top three American indices, such as the Dow Jones, Nasdaq 100, and S&P 500, moved into a bear market as stocks slipped. Likewise, other renowned assets such as silver and gold pulled back too.
Major losses
Every month, the Bitcoin price is falling over 20 percent to around $32000 now. Last year in November, BTC traded for as much as nearly $69000. An over 50 percent dip represents significant losses. Ethereum, too, saw the same losses as BTC in the last month. It was down to almost $2400. Cardano suffered worse and fell by nearly a third to $0.69.
It does not yet match the severity of the crash in 2018, in which BTC lost nearly 80 percent of its value. According to experts, things may worsen for people left holding Bitcoin. If such losses have prompted the finance regulator of India, the RBI, to issue continuous warnings to cryptocurrency investors. It says that there is no such assurance of returns and that people must get prepared to lose all they invest.
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it an excellent choice for those who are beginning. Meanwhile, it looks like demand for BTC has dropped a lot recently. For one, as per on-chain
data, the activity level in the network has been dipping. Additionally, results from firms such as Coinbase and Block showed that the total Bitcoin traders had been too falling.
So should investors buy the BTC dip? As per analysts, one can begin buying this BTC dip by making use of a dollar-cost averaging method. For one, it looks like the coin is forming a pattern of a double pattern. There are signs that inflation is easing. The Federal Reserve will begin slowing its hikes in the upcoming months.
Price prediction of Bitcoin
The 4-hour chart indicates that the Bitcoin/USD price is creating a double-top pattern. Its floor was 17,708. In an analysis of price action, such a pattern is generally a bullish signal.
Simultaneously, the accumulation along with the distribution indicator moved slightly in the upward direction.
So there is a chance that this coin will begin to rise as long as bulls are capable of remaining above the major support at $17,708. Yet a drop below such support will see Bitcoin crash to under $13000.
Conclusion
Prices of BTC have shown a considerable seasonality degree to date. It appeared to fall in value to lesser or greater extents in spring before it bounced back at the start of summer. Yet as with each kind of investment, let alone the unpredictable world of cryptos, past performances are no assurance of upcoming results.
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