Bitcoin Price Down or More Pain to Come?

Bitcoin price continued to rise since the beginning of this year, but last March we saw the price of Bitcoin hit an all-time high, but since then the price of Bitcoin has been steadily declining. Last few days ago we saw the price of Bitcoin drop a lot and the price of Bitcoin was trading around $49 thousand down from the highs. Even just this week the price of Bitcoin has been bearish and the price of Bitcoin was down about 16% at the beginning of this week. Bitcoin price fell to $49,000 and the sudden drop in Bitcoin price has investors and traders scrambling to make sense of the sudden change in market dynamics. Thus sudden Bitcoin price drops and volatility are mostly bullish in the long term.

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The recent crypto carnage is currently happening due to factors ranging from some recent geopolitical tensions in the past or current month to heightened global economic uncertainty, inflation concerns and changes in monetary policy to market volatility in various asset classes. Also if we look at how Mt Gox is selling or transferring bitcoins to provide loans to real customers, the German government and the US government have also had quite an impact on the Bitcoin market. In addition, issues like the Iran-Israel war and the recent non-cooperation movement of Bangladesh students and the fall of the government have affected the market a lot. Because we know that Bitcoin is often considered a hedge against the volatility of traditional markets. These were not immune to larger economic forces.

Although we know Bitcoin spot ETFs have been introduced since the beginning of this year. And after such spot ETFs were approved that attracted considerable institutional interest and netted $17 billion in these new investment vehicles. But despite this amount, the price of Bitcoin has failed to maintain the upward momentum that was expected to increase the price of cryptocurrency. Moreover, events such as the Bitcoin halving in April this year did not keep Bitcoin's price up. Although this year the price of Bitcoin broke the record of the previous year and reached the highest level in history but since then we have started volatility in the price of cryptocurrencies including Bitcoin. Currently, the price of Bitcoin is close to 56 thousand dollars, but other altcoins have decreased in price by a lot. Therefore, there has been some panic among the investors who have decreased in this way and many are thinking that it will decrease further or go much deeper.

But one thing we can note is that this kind of fall in Bitcoin price is not new and it is part of its maturation process. As the price of Bitcoin fluctuates steeply, such candles essentially create buying opportunities for strategic investors. But another thing is that this fall in the price of Bitcoin and the growing ecosystem around it such as ETFs and yield options will eventually stabilize the market and attract a larger investor base over time.

However, it is not new that the price of Bitcoin falls like this. Because we can see how much liquidation has happened in the past week or this week. Especially for this type of liquidation we often see huge fluctuations in the market. However, this time, after the price of Bitcoin decreased a lot, it suddenly rose, and the price of Altcoins does not increase as much as it decreases. However, we have seen Bitcoin prices rebound a bit this week after a steep decline. But in reality such a deep price move brings one of the opportunities. This is also an opportunity to buy deep. However, if the current economic situation or geopolitical instability is overcome, we hope that soon the price of Bitcoin will increase and we will see the All Season. So the current time is one of the opportunities to buy deep and may be the last opportunity. Because we should remember that every weakness in the BTC price is a 'buy the dip' opportunity for those on the sidelines or those looking to add risk.