Bitcoin price dropped by a percentage point in today’s trading session, continuing the upward trend that started last week after dropping below the $20,000 price level. The bitcoin price drop comes amid dollar pressure, rising federal interest rates, worries about inflation and a looming recession, which has become a concern for most investors, affecting the entire cryptocurrency industry.
However, despite these factors, Bitcoin received mixed signals in the markets after the Ethereum merger which led to the transition of the Ethereum platform from Proof of Work to Proof of Stake. For many bitcoin enthusiasts and investors, this move was seen as positive for bitcoin.
They argue that the consolidation made Bitcoin account for 95 percent of the total market capitalization of the tokens using Proof of Work, and thus investors should expect to see Bitcoin begin to recover, describing POW as the only acceptable and proven method for digital creation. commodity.
Bitcoin Price Prediction
Bitcoin technical analysis indicates a high probability that we may continue to see prices drop in the next few trading sessions. For starters, over the past few months, the $20,000 price level has been the psychological area where most of the buyers and sellers have concentrated.
The result has been bitcoin’s price swing around this area over the past few months. Even in trading sessions that looked as if a new trend might start, buyers or sellers followed suit, sending prices back to the $20,000 price level.
Therefore, my Bitcoin analysis expects the price to drop and possibly reach its recent lows at $177,715. However, just as it has been for the past few months, my analysis takes into account the possibility that the current downtrend may not be a trend reversal. In fact, I expect that after the current decline, prices will likely pull back and head towards the $20,000 price level. My analysis will only be invalidated if prices continue lower after hitting the $17715 price level.