Where Is Bitcoin Heading After Dropping To Its Lowest Since December 2020?

Bitcoin prices have lost much more recently, falling to their lowest level in about 18 months as dangerous assets face difficult market conditions.

The most visible digital currency fell below $ 21,500 today, TradingView figures show.

At this point, it has been trading at its most volatile price since early December, additional TradingView data reveals.

The cryptocurrency has fallen sharply since reaching a peak of close to $ 69,000 late last year.

[Editor’s note: Investing in cryptocoins or tokens is highly speculative and the market is not highly regulated. Anyone who thinks about it should be prepared to lose all of their investment.]

Following this recent price movement, several analysts have speculated that they think bitcoin will go next.

Impact of Inflation

Many market observers have highlighted the latest U.S. inflation figures, as well as how they expect to affect dangerous assets going forward.

Government data has shown that in the 12 months to May, the Consumer Price Index for All Urban Consumers (CPI-U) increased by 8.6% before the adjustment season.

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  • Richard Usher, head of OTC Trading at BCB Group, spoke about the changes.

“Bitcoin has suffered 48 hours of trading that sends the largest number of inflation in the USA,” he said.

“This number is leading to continued sales of all dangerous assets and has increased Crypto with ETH violating its long-term support and various rumors of crypto companies under pressure,” Usher said.

He predicted that going forward, the situation would create an inevitable chaos.

“From here BTC enters a time when two worlds are colliding. Short-term traders after a bad risk profile are targeted by medium-term investors who see close to 20,000 levels as a good long-term value. ”

“This will lead to more flexible and flexible trading in my opinion.”

Anthony Denier, CEO of the trading platform Webull Financial, also estimated the impact of the latest U.S. data. CPI.

“Inflation figures were released last week, which has been the highest for 40 years, and inflation is expected to rise in the near future which is detrimental to dangerous assets,” he said.

“When interest rates rise, savings accounts and bonds pay higher interest rates on investment,” Denier stressed.

“These rising prices for less risky assets mean that investors do not risk much to earn a decent return, leading to an increase in buyers of risky assets. In today’s market, this includes the growth of stocks and cryptos, so we can continue to expect a decline in the near future. ”

Technical Analysis

Many market observers have provided technical analysis, highlighting important levels of support and resistance.

“The recent downturn now has caused BTC to break evenly below its critical support level of around 30k,” said Julius de Kempenaer, chief technology analyst at StockCharts.com.

“This means that that level is now going to start working as a resistance, going down a notch,” he said.

“But at the same time the break has paved the way, for the most part, low prices,” de Kempenaer said.

“There is little support to be found in the area of ​​16.5-19.5 but most support will come in at 12-13-k”

Scott Melker, a crypto investor and editor-in-chief of The Wolf Of All Streets Podcast, also joined.

“There are obvious levels, though it should be noted that the lines on the chart are just speculation in this large area,” he said.

“Traders view the weekly 200 MA, just over $ 22,000 as a possible support base, considering that this has been the sum of all the bear markets in the past. Two consecutive candles have never been lit under this line, ”Melker explained.

“The next obvious support is around $ 20,000, the highest of the 2017 capital,” he said.

Speaking about what bitcoin prices will do going forward, Melker provided a balanced answer.

“It is difficult to predict what will happen next, as it will largely determine the potential impact of a possible platform collapse, inflation figures, Fed firmness and other factors.”

“Now is not the time to guess, but instead to close the holes and climb the storm.”


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