Bitcoin is currently facing adverse situations with its consistent falling value
The current state of Bitcoin is one of the roughest stages for its supporters. BTC, the largest digital currency is facing threats of losing its massive market dominance. Currently, investors and analysts have realized that BTC is forming a pattern that suggests even more suffering in the near future. The ‘Death Cross’ measure indicates the pattern whenever a crypto’s average price over the last 50 days drops more than that of its 200-day moving average, an indication that measures up the asset’s downtrend momentum. Even though it is not the case for Bitcoin yet, analysts and critics believe this soon might be the incident for BTC. According to coinmarketcap, at the time of writing this article, Bitcoin is trending below US$38,000 which clarifies the most important fact, that it will take a lot of time for BTC to recover its position in the market. The consistent decline in Bitcoin’s value might also lead to an unexpected sell-off season that could put the crypto at a major risk. According to reports, if Bitcoin continues with the downtrend, it will soon dive as much as US$25,000 before the end of 2022.
It is high time that Bitcoin developers start concentrating on how to attain the ‘Golden Cross’ moment, where the crypto will satisfy its institutional and private investors by generating massive amounts of profits and taking over its old market position. A death cross addresses an unsettling position for the cryptocurrency where it has to face more losses and bearish trends. Previously, in the first week of April 2022, Bitcoin reached its all-time highs reaching upwards of US$47,000. Quite around that time, key indicators predicted that April might be the miracle month for Bitcoin, where it will finally be able to break the US$50,000 resistance. But they also warned that if Bitcoin fails to cross the US$47,000 block, it will descend down further than any other crypto critic has ever predicted. Well, it seems like BTC took over the negative aspects of the prediction way too seriously and is now giving its investors nightmares of losing all their money.
But why is Bitcoin still falling?
There have been several instances where Bitcoin soared more, giving investors the hope of reviving their investments. In fact, after the Biden administration released the executive orders that encourage making a framework to adopt digital assets, the Bitcoin price spiked. The government is also reportedly examining the major opportunities that major cryptocurrencies like Bitcoin have to offer. While this step welcomed those who believe that they can benefit from the greater regulatory conditions, there were also several others who sold off their Bitcoin holdings, leading to a major crypto crash. Besides this, the framework designed to control inflation had a negative impact on the price of BTC. High-risk value assets tend to decline severely when there are any policy changes.
Due to several reasons similar to those, Bitcoin’s value dipped sending investors into a mode of panic. Leaving behind the forthcoming regulatory measures and investor sentiments, analysts have predicted BTC investors should also be prepared for the prices of all digital assets including Bitcoin to move in relation to the prices of traditional assets. Lesser-known cryptocurrencies may move with or without the correlation of traditional assets, but major assets like Bitcoin and Ethereum would directly co-relate with conventional assets.
Bitcoin might fall into the death cross mode but to be true it needs the support of its investors. BTC investors are concerned about how its price can benefit from monitoring developments related to all assets in the financial market. It is hard to say if Bitcoin will or will not dive down to US$25,000, but it surely will take a lot of time to recover its lost glory.
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