Bitcoin has hit new lows since the start of this year. After testing the $30k waters for a long time, the Bitcoin price finally dived. And now, the market conditions are attempting to pull down the value of the world’s first cryptocurrency to below $20k levels.
This fall has people asking if it is the right time to buy the dip. Let us explore whether the current market conditions are optimal for buying Bitcoin or if there is another bottom down the line that you might not want to miss out on.
The Rapid Free Fall of the Crypto Market
The current crypto market has been akin to more of a bloodbath and less of a winter. Now that over $2 trillion worth of digital currencies has been wiped out, people are trying whatever they can to salvage the situation.
As per CoinMarketCap’s latest data, the cryptocurrency market cap currently stands at $933 billion. And while it has marginally increased by 7.54% from yesterday, it is still below the $1 trillion anchor that the entire crypto community was desperately clinging to.
Bitcoin and Ethereum are the major sufferers of this market
Bitcoin and Ethereum have suffered the most during this bear market. The world’s premium cryptocurrency – Bitcoin – is currently priced at $21,440. It is 7% up in the last 24 hours but has tumbled by a whopping 28.77% in the previous week alone.
Ethereum isn’t fairing any better. The stETH depegging and a less than optimal test run have cost Ethereum a lot. The token is currently trading at $1.16k and is up by 11.46%. It is a nominal increase compared to the 36.18% loss it has suffered in the past seven days.
The losing value is building an enormous sell pressure, and the liquidation is happening rapidly. Investors wonder whether it would bottom at $15k or drop even further.
Bitcoin Price Prediction – The token might go lower than $15k
Experts are saying that Bitcoin could test at $19,700 levels. And if they sell pressure continues, the price might cross the $15k threshold and reach $13,700 soon.
Stating that the next few days will be the most crucial for the token, analysts have emphasized that Bitcoin has hit 200 MA (Moving average) and is dipping continuously. Considering those factors, an $18k mark is a good support zone. Or, it could act as a zone for accumulation.
Once the token touches the $20k value, the bulls will try to hold it, and the price might see a marginal uptick. However, that support might not hold for long as the current inflation might create more issues.
But the coin could go into more uncharted territories. American Investors Jeffrey Gundlach told CNBC that it wouldn’t surprise him if Bitcoin plunged to the $10,000 level. He also stated that maintaining support at $20k might not be possible since the bulls couldn’t do so when the coin hit $30k.
Factors determining the Bitcoin Price
There are four factors that impact Bitcoin’s price at any moment:
- The supply and demand – The lack of bulls in the current ecosystem has negatively impacted the current price.
- Rules and Regulations: They have started to get tighter because of the environmental and energy issues.
- Media’s power – The Media has continued to hark on Bitcoin because of its Proof of Work consensus mechanism.
- Halving: Bitcoin halves the rewards after the mining of 210,000 blocks. That has an impact on the supply and demand for the token.
However, many have said that the current Bitcoin dip is different. The number of people bullish about crypto has decreased, and the recent mishaps with Celsius, stETH, and Three Arrows Capital might play a bigger role in deciding the fate of Bitcoin.
Should you buy the Bitcoin Dip?
If we consider the expert’s views, we recommend against it. Bitcoin is now hitting the lows that were the highs of 2017. The token can drop further, and it is far from bottoming at $15k. We recommend watching the market closely and listening to the experts.
The ongoing crypto winter has no end date. But experts say that the bottoms start to appear near the end. So, we suggest you stay updated with IB news and grab the opportunity to buy the dip when it arrives, which is not now.
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