Fluctuating bitcoin will hold down price for longer.

Bitcoin recently rallied past $32,000. You might have heard that it’s “your last chance to buy bitcoin below $30k”; well, that wasn’t it. Turn’s out the number one cryptocurrency was just dangling around, playing the bulls while the bears keep running the space. Altcoins also rallied shortly on bitcoin’s trail. These gains were surrendered as bitcoin slumped below $30,000 withing 24hrs.

One thing is clear, we are in a bear season. How long this will last is not certain. Popular prediction is the market returning to green in a short while. The bears have reigned for over six months and bitcoin’s price has been in an almost steady drop since hitting its current high of $67,000. That $69k party didn’t hold…not any time soon too. Bitcoin price has dropped below 50% since then as most altcoins record over 70% losses. A handful have been damaged beyond repair already.

Data from charts shows that bitcoin is steadily making new lows while posting brief recoveries. Tangible crashes are preceded by smaller and short-lived gains. This trend started since bitcoin broke the $40,000 resistance and has continued since then and at the time of this writing, bitcoin has slumped below $27,000 and continues to form short term peaks that barely hold on for a while. Patterns like this is an indication of a slow and long running crashes.

Bitcoin’s downtrend also follows a relative fall in shares and stock prices. Altcoins usually responds to bitcoin’s actions; this time is no different. These movements bear a good resemblance to early 2020 trends following the pandemic. In contrast things might actually turn out differently with a less drastic but slow crashes that lasts for a longer time.

It is hard to analyze macroeconomics but it appears that majority of the world economy is enduring a pretty tough time. The crypto space is only getting its fair share of the presiding economic state.

The state of bitcoin, pricewise, has an even bigger effect on rest of crypto market. Thanks to its new algorithmic stable coin project, Tron has held its head high; but it is amongst a very short list of projects that hasn’t crashed so badly in the past 90 days. Posting over 30% gains during this time frame, the effect of the USDD stable coin has been nothing but positive for the Tron ecosystem. Despite a whole lot of developments coming to the ethereum blockchain, price has struggled along with bitcoin and other altcoins.

Global events have much effects on the direction of the market. With the edgy outlook of the global economy, bitcoin might stay down and fluctuate for a long period of time between $25,000 and $35,000. This movement is sure to draw the rest of the market down as well.

We could see these prices persist for a while and even go lower. But this period is a real test of your belief in the ability of cryptocurrencies to hold up against widespread sell-off and an army of investors looking to offload their investments and leave the space. There are discounts everywhere, every crypto asset is down bad and you can buy some of them for a penny… they used to sell for over $100. It's the test time, feel free to make use of this low price, but this is not financial advice.

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