Bitcoin Crypto has managed to recover and break out of its current channel despite the extreme volatility in the market, and its price is expected to soar in the next months.
In recent days, Bitcoin’s price has been ranging over the USD 21,000 resistance. The rise was small, pushing the price slightly above USD 21,450. USD 21,550 and USD 21,650 were close to the areas where the selling pressure was most evident. Above the next barrier, which is near the USD 22,000 level, the price may start a solid rebound wave.
Over the past few days, the world economy has been in the red due to worrying macroeconomic factors like Europe’s rising gas prices, which has had a significant impact on the BTC pricing.
The DXY index, which has been climbing as a result of investors transferring their money into US dollar reserves as a result of concerns about the possibility of a worldwide recession, is another factor that is causing cause for anxiety. All other markets were influenced as a result of this, including the markets for cryptocurrency assets.
The Event That Started the Protracted Bear Market
According to Nicholas Merten, an analyst who is generally known and followed, Bitcoin (BTC) and the cryptocurrency markets are just at the beginning of an extended bear cycle.
In a newly held strategy session, the host of DataDash asserted that other markets are already beginning to warn of the emergence of an unfavorable macro environment, which will unavoidably put pressure on digital assets. He made this claim in reference to the fact that other markets have already begun to warn of the emergence of an unfavorable macro environment.
Examining Patterns Over a Short Period of Time
According to Merten, the higher values that were seen earlier this month will act as resistance, sending BTC and ETH back down to lower levels and into a longer-lasting bear market. However, Merten also forecasts that a short-term bounce may arise for Bitcoin and possibly Ethereum (ETH).
He went on to say that there was a possibility of a short-term rebound occurring within the next four hours for Bitcoin and Ethereum to determine whether or not they could reach back above $24,000 and begin using those levels as support.
In add to this, he mentioned that these levels are significant and that there is no assurance that the price would return to this range in the future; however, he did say that a potential rebound in the short term is predicted. A substantial downward correction is going to take place during the next few weeks.
A Few Parting Thoughts
It is possible that Bitcoin will fall to between $11,000 and $12,000 before a true bull run gets underway. This indicates that there is a present 50% likelihood that BTC will go down, but based on its historical performance, there is a possibility that it may rise to at least $68k. As a result, there is a possibility of a threefold upside payoff for equity investments and cryptocurrency investments when they finally emerge from the bad market. In addition, there is a dividend that is multiplied by two if the value of BTC just returns to where it should be.