Bitcoin price dump. What's next?
Hello traders,
Bitcoin price plunged on almost 20% just in one day and overall on whooping 30% from recent top since last week.
In my previous idea, I indicated that if Bitcoin won't rise above 70k area then we might see BTC below 60k but it dropped even deeper, below 50k. This was unexpected.
What we can expect next from Bitcoin price action?
There are few things that I would like to mention in this regard.
First, such big price dumps often indicates that bottom might be near. This doesn't mean that Bitcoin won't go lower and will only rise but it indicates that there is no much room left for downward movement.
As an example, corona dump, on that day BTC declined on 40% but that turned out to be a bottom and from there it rose up to 69k.
Note that after corona dump it took over a month for BTC to recover, so I don't expect quick recovery after today's dump either.
Another thing to note is that Bitcoin price reached average mining cost of Bitcoin which seats at around 53k for big mining companies.
This means that when Bitcoin drops below 53k most of the miners are losing money.
Usually this doesn't last long and price recovers quickly, let's see if this will be true for the current situation.
On other side, uncertain geopolitical situation all over the world, fear of recession and other factors might push Bitcoin price even lower but at the moment I don't think that we'll see BTC much lower than 49k.
Last thing, historically, when there have been panic sales on the markets, usually it was one of the best times to buy in long term. That might be the case with this huge price dump also.
Please, do not forget to boost this idea and leave your comments below, thanks.
Bitcoin price plunged on almost 20% just in one day and overall on whooping 30% from recent top since last week.
In my previous idea, I indicated that if Bitcoin won't rise above 70k area then we might see BTC below 60k but it dropped even deeper, below 50k. This was unexpected.
What we can expect next from Bitcoin price action?
There are few things that I would like to mention in this regard.
First, such big price dumps often indicates that bottom might be near. This doesn't mean that Bitcoin won't go lower and will only rise but it indicates that there is no much room left for downward movement.
As an example, corona dump, on that day BTC declined on 40% but that turned out to be a bottom and from there it rose up to 69k.
Note that after corona dump it took over a month for BTC to recover, so I don't expect quick recovery after today's dump either.
Another thing to note is that Bitcoin price reached average mining cost of Bitcoin which seats at around 53k for big mining companies.
This means that when Bitcoin drops below 53k most of the miners are losing money.
Usually this doesn't last long and price recovers quickly, let's see if this will be true for the current situation.
On other side, uncertain geopolitical situation all over the world, fear of recession and other factors might push Bitcoin price even lower but at the moment I don't think that we'll see BTC much lower than 49k.
Last thing, historically, when there have been panic sales on the markets, usually it was one of the best times to buy in long term. That might be the case with this huge price dump also.
Please, do not forget to boost this idea and leave your comments below, thanks.
Note
Bitcoin price recovered above 60k and currently hold there.
This is very good sign for the bulls but at the moment it doesn't mean that price won't go down in the future.
In order to resume uptrend BTC price should rise to 64k-65k area and hold there.
Note
Bitcoin price dropped to 58k area after CPI release.
Currently price is trading sideways and it can go up or down with 50/50 probability.
If price manages to sustain current level then we can expect price rise back above 60k.
If price drops below 58k then it can decline to 55k-56k area.
Note
Bitcoin price reached 64k-65k resistance area and currently is trading just around 64k level.
Last weekly candle closed in green and it can push BTC price even higher but first it should break 65k resistance. Probably it will need some time to gain strenght.
Also, BTC price almost fully recovered from that drop to 50k and has good chances to close monthly candle in green.
Let's see if Bitcoin manages to do so.
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