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