Since its peak, Bitcoin has lost around 18 percent of its value, and other significant coins have harmonized with it. Billions have been wiped from the overall cryptocurrency market.
Ethereum is currently at around $4,200 after soaring past $4,800 just over a week ago. Solana, Ripple, Cardano, Dogecoin and Shiba Inu all made similar losses.
At the time of writing, Bitcoin, BTC to USD, was down by 2.53% to $57,207.0.
Bitcoin price saw a quick upswing after its initial downswing on November 18. This immediate run-up failed to gather steam, leading to rejection and a retracement. This short-term bearish outlook translated to Ethereum, Ripple, and other altcoins.
Is Bitcoin Price Approaches Stable Level?
The bitcoin price rose 7.4% in two days but failed to surpass or even retest the $60,000 psychological support level. As a result, BTC is undergoing a reversal to the $56,233 support floor. A breakdown of this barrier will result in a move to the $52,746 to $54,972 demand area.
This down move is critical to collect liquidity resting under $53,000, which is likely to occur this week. If large buyers step in, the downswing will cease, and a reversal can be expected. However, in a worst-case scenario, a breakdown of the $53,000 barrier could lead to an 8.7% crash to $48,379.
While things are looking down for Bitcoin price, a decisive daily candlestick close above the $60,000 barrier would turn the tables and expect an upswing narrative. In such a scenario, BTC could retest the $63,000 resistance barrier.
If the big crypto survives to flip this level, it will likely incorporate $63,000 and $65,000. Only a daily close above the $65,0000 level would cancel the bearish thesis.
Bitcoin Price Prediction
Projecting the price of BTC isn’t an exact science, but Bitcoin has strong energy going into 2022. Research shows that this leads to solid asset class returns, so I’m not just saying BTC is going higher because Mercury is in retrograde. As long as the Federal Reserve is stuck between a rock and a hard place on inflation, the path of least resistance is up for BTC.
The price of Bitcoin is known for massive rallies and crashes, and it is expected at least one significant upswing and downswing in 2022. Factors likely to cause Bitcoin to drive higher include ETF approval, institutional adoption, user adoption, and good old-fashioned FOMO. Some uncertainties that could make Bitcoin fall include a black swan involving Tether, ESG concerns, and raised interest rates in the US and EU.