Bitcoin price again suffered a major pullback with the announcement of fresh CPI rates. Some analysts and phenomena predict that the BTC price will still be vulnerable to a steep drop. Unanswered questions are clouding the crypto market: Has the Bitcoin base formed or not?
5 reasons Bitcoin price will soon see bottoms
The price trend has been unstable as Bitcoin has been extremely volatile for the past 7 days. Currently, the bulls are moving to keep the price above the lower support. Therefore, prices are expected to rise to high levels after a short consolidation. Conversely, some popular analysts believe the price will test the $22,500 and $23,000 resistance areas and drop drastically after a rejection. On the good side, huge bullish signals are flashing for Bitcoin (BTC) price, showing that it has already bottomed out.
macroeconomic environment
Macroeconomic factors have remained significantly less volatile since June. It therefore paved the way for the crypto markets to remain at lower support. CPI rates did not fall as expected. But the slow decline continued, with GDP rising significantly. On the other hand, unemployment rates remain low with the decline in housing and rent prices. The supply chain has also rebounded as oil demand plummeted. The Ukraine-Russia crisis also seems to reach its fate very soon. This shows that conditions are normal as usual.
Reduced intensity of bull and bear markets
Recently, Bitcoin has reduced its intensity in bull markets as well as bear markets. In 2013, the BTC price increased 4 times. That fell to 1x in 2017 and just 0.2x in 2021. The bearish effect has also subsided as the BTC price has dropped 86% in 2014, 83% in 2018, and about 75% recently. Along with the density, the timeline from ATH to bottom also fell from 405 days in 2014 to 364 days in 2018. The current bear market so far is 308 days. So if Bitcoin has to reach the bottom, it needs to reach it within the next 60 days.
Historical data of bitcoin price
If the chart pattern of the 2018 bottom is compared to that of the current bearish cycle, you can relate both patterns. The price fell in 2 to 3 stages with a big drop followed by a stagnant trend. After a brief consolidation, the price drops heavily to mark lows again. Also, the consolidation ends with a retracement near the bottoms.
No specific relationship between stock market and Bitcoin
Some see Bitcoin price flowing in the direction of stocks. However, both markets have exhibited independent trends from time to time. Therefore, no particular relationship can be established between crypto markets and stock markets lately.
Bitcoin continues to trade within the die
Regardless of short-term price fluctuations, BTC price has largely maintained its trend within the predetermined pattern from the beginning. After completing 3 cycles, Bitcoin is on the verge of performing the 4th cycle.
In summary, Bitcoin price is the biggest topic of discussion in the crypto market right now because it will have a huge impact on other altcoins. From the above points, we can conclude that BTC price will definitely not point to new lows unless a major black swan event pulls the entire crypto space down. Until then, BTC price will continue to trend upwards in the long run, although it is in a bearish effect. As you follow on Kriptokoin.com, Bitcoin spent most of the day defending $20,000.
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