Is a Drop to $15,000 Price Level Possible?

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On Sat­ur­day, the Bit­coin price fell below $20,000 for the first time since Decem­ber 16, 2022. The intra­day trad­ing con­tin­ued to accel­er­ate the sell-off, which saw prices fall to trade below $17,600. How­ev­er, Saturday’s trad­ing ses­sion would recov­er in the late hours, which pushed the prices to close at $18,956. 

Saturday’s close pro­vid­ed a per­fect set­up to con­tin­ue a strong bull­ish move yes­ter­day. The prices rose by 8 per cent, clos­ing the mar­kets at $20,064.  In today’s trad­ing ses­sion, the ear­ly hours of intra­day trad­ing have been aggres­sive­ly bear­ish, with prices falling by 2 per cent.

Why is Bitcoin Dropping?

The year-to-date data shows that Bit­coin has fall­en by 56 per cent, with much of the loss com­ing in the last three months. In June, Bit­coin prices have dropped by 36 per cent, extend­ing the pre­vi­ous two months’ aggres­sive bear­ish move that saw prices fall by 15 per cent in May and 17 per cent in April.

The aggres­sive bear­ish trend in June is the lat­est sign of tur­moil in the cryp­tocur­ren­cy mar­ket that has part­ly been con­tributed by tur­bu­lence in finan­cial mar­kets, increas­ing inter­est rates, infla­tion, and eco­nom­ic uncer­tain­ty spurred by the war in Ukraine. 

The cur­rent Bit­coin fall was also fueled by recent events that includ­ed the fall of Ter­ra Luna and the USDT sta­ble coin, result­ing in bil­lions of dol­lars in loss­es. This month, the announce­ment by Cel­sius that they would be paus­ing with­drawals from their plat­form also did not augur well with investors. 

The news about lay­offs by major cryp­tocur­ren­cy com­pa­nies also did not help quell the ten­sion in the cryp­tocur­ren­cy mar­ket. Coin­base Glob­al Inc, Gem­i­ni and Block­fi all indi­cat­ed they would be lay­ing off thou­sands of employ­ees., These plat­forms, being some of the biggest in the cryp­tocur­ren­cy indus­try, may also have con­tributed to the fall as investors start­ed sens­ing a prob­lem with the indus­try and ditched their cryp­tocur­ren­cy investments. 

Bitcoin Price Prediction

Much of what will hap­pen in the mar­kets for the next few trad­ing ses­sions will be major­ly fueled by the cur­rent news cycle. With ris­ing infla­tion and an already ner­vous investors base, there is a high like­li­hood that we will be see­ing Bit­coin prices con­tin­ue to fall in the next few trad­ing sessions. 

There are also fears of a reces­sion that have pushed most investors on edge, and result­ed in the sell-off of risky invest­ments such as Bit­coin. If such sen­ti­ments con­tin­ue to per­sist in the mar­kets, then there is a high like­li­hood that we will see Bit­coin trad­ing below the $15,000 price level.

How­ev­er, improve­ment in the cur­rent glob­al eco­nom­ic out­look will inval­i­date my bear­ish analy­sis. It will also mean a pos­si­ble Bit­coin recovery.

Bitcoin Daily Chart

Bitcoin price prediction



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