Bitcoin continues to fall unchecked on the way to support at $29,500
Bitcoin continues to fall unchecked on the way to support at $29,500

Cryptocurrencies continue to fall at the start of 2022. Investors who entered in the last few months suffer losses of up to 50%.

Physical representation of different cryptocurrencies.

They return the strong corrections in bitcoin extendable to other cryptocurrencies in an environment of widespread corrections in the stock market.

And this is causing investors who are willing to enter this cryptocurrency to take advantage of the current price drop, since they do not see that it has a brake simply get out of the way and quietly let prices bottom first to enter after the start of the rebound.

However, it is highly likely that we will not see that bottom yet as the previous correction ate 55% of its value from its all-time highs and in the current correction we just gave back 50%.

Bitcoin evolution in weekly candles

Bitcoin evolution in weekly candles
Eduardo BolinchesProRealTime

If the current corrections are extended to the same percentage terms with respect to last spring’s correction, it would leave the price close to the lows of that time around $29,500.

The bitcoin would arrive very oversold, in fact, it already is so the bullish reaction can really at any timebut if this price zone is lost, a rather worrying market ceiling figure would be generated because it would launch a scenario of corrective continuity up to $13,000.

A tremendously negative scenario in which none of the investors who have recently bought bitcoins wants to be involved, but with the philosophy that many have of buying as its price drops, it is possible to reach the scenario of having zero liquidity when the ground is actually being made.

The stock market is putting downward pressure on bitcoin pricesbut if we really are seeing the beginning of a bear stock market it is going to be downright difficult for the price of bitcoin not to end up losing the vital support zone of $29,500.

There will be rebounds, but in the same way as those since last November, as in the Nasdaq technology market, they are not able to break the pattern of falling highswe can without any problems reach the drop potential of the double roof that threatens to activate.

Bitcoin sinks below 35,000 dollars: it is worth half what it was two months ago

Cryptocurrencies have suffered a strong retreat from speculative positions due to fears of vetoes and changes in monetary policy.

A bitcoin coin on stock charts.

The bitcoin suffers one of the most accelerated crashes of its turbulent history. The main cryptocurrency sees its price sink below 35,000 dollars this weekend, so that it flirts with its lows of the last year. Right now, each of these digital currencies It’s worth half what it was just two months ago.

At this weekend’s lows, bitcoins have been sold for less than $34,100 on the main platforms in which the cryptocurrency marks a price. This represents a disaster of 21% only in the last week. A percentage that increases to 33% if prices from just a month ago are taken as a reference, when its value remained comfortably above $50,000.

If the reference is taken in the prices with which the cryptocurrency queen the year began, the decline reaches 26%. That is to say, in these 23 days of 2022 -it must be remembered that the contracting of the digital currency is continuous even on weekends-, bitcoin has lost a quarter of its value. A fraction that is doubled if the more than 67,500 dollars at which they were trading in mid-November are considered.

discount or cheat

Although bitcoin advocates point to this sharp pullback as an opportunity to take or strengthen positions In the “discounted” digital currency, the truth is that these falls once again account for the strong volatility that characterizes its evolution and that has been spurred on as its popularity has increased.

The lows reached this weekend are still 13% above $29,800 at which bitcoin hit its lows last yearback in July. However, the instability introduced into the markets by the possibility of central banks accelerating their withdrawal of stimuli means that the collapse towards these levels don’t be such a far-fetched possibility.

Although cryptocurrencies are exempt from any central bank intervention due to their decentralized nature, their latest price movements seem to show that are not alien to the feeling that these institutions generate in the market when they recognize that changes in their monetary policies are coming.

Thus, the falls have increased since it became known that the US Federal Reserve (Fed) it would speed up their withdrawal plan. Even more so since the possibility of the world’s leading economy raising rates for the first time since the outbreak of the pandemic as soon as this March has been put on the table. Even before.

Central banks and regulation

In this sense, beyond the use of bitcoin and its little sisters as a store of value and commercial currency, it is clear that many of its investors resort to it with speculative overtones to get an extra return for their portfolios. When other assets fall sharply, especially stock markets, the withdrawal of positions also extends to the universe crypto.

Within this discourse, the International Monetary Fund (IMF) has urged administrations to change the focus of regulation of this market from prohibition to firewalling traditional finance. And all after having verified in a study the growing “correlation with the stock market”. A circumstance that has put the institution on guard against the “increased risk of contagion” that this entails.

As if that were not enough, precisely in the last days Russia slipped the possibility of restricting or vetoing the use of cryptocurrencies as payment currency, as well as prohibit the mining of these digital currencies in its territory. A movement that has added speed to recent price declines, given that the initiative would mean the withdrawal of about 1.8% of the world’s population from this ecosystem.

With these ingredients, the collapse extends to the entire market. Only in the last month ethereumwhich is the second most popular cryptocurrency, has suffered a loss of 40% of its value. Cardano, to cite another example, yields 24% in this period. Thus, the joint capitalization of this economy has yielded from 3 billion two months ago to the 1.6 billion currently indicated by the specialized portal CoinMarketCap.

Bitcoin continues to fall unchecked on the way to support at $29,500

Cryptocurrencies continue to fall at the start of 2022. Investors who entered in the last few months suffer losses of up to 50%.

Physical representation of different cryptocurrencies.

They return the strong corrections in bitcoin extendable to other cryptocurrencies in an environment of widespread corrections in the stock market.

And this is causing investors who are willing to enter this cryptocurrency to take advantage of the current price drop, since they do not see that it has a brake simply get out of the way and quietly let prices bottom first to enter after the start of the rebound.

However, it is highly likely that we will not see that bottom yet as the previous correction ate 55% of its value from its all-time highs and in the current correction we just gave back 50%.

Bitcoin evolution in weekly candles

Bitcoin evolution in weekly candles
Eduardo BolinchesProRealTime

If the current corrections are extended to the same percentage terms with respect to last spring’s correction, it would leave the price close to the lows of that time around $29,500.

The bitcoin would arrive very oversold, in fact, it already is so the bullish reaction can really at any timebut if this price zone is lost, a rather worrying market ceiling figure would be generated because it would launch a scenario of corrective continuity up to $13,000.

A tremendously negative scenario in which none of the investors who have recently bought bitcoins wants to be involved, but with the philosophy that many have of buying as its price drops, it is possible to reach the scenario of having zero liquidity when the ground is actually being made.

The stock market is putting downward pressure on bitcoin pricesbut if we really are seeing the start of a bear stock market it is going to be downright difficult for the price of bitcoin not to end up losing the vital support zone of $29,500.

There will be rebounds, but in the same way as those since last November, as in the Nasdaq technology market, they are not able to break the pattern of falling highswe can without any problems reach the drop potential of the double roof that threatens to activate.