Bitcoin is approaching its worst year since 2018 in 2022 with a dramatic drop from US$68K in November 2021 to US$20K in June 2022. The highly volatile crypto market has created tension within the community of crypto investors. The cryptocurrency price is increasing at an unanticipated rate for them in June 2022. If this 2018 pricing trend continues, Bitcoin could reach US$16,175 next year. Short-term crypto investors are using this decline in price for their buy-the-dip strategy to drive profits in their crypto wallets in the near future.
Current status of the popular cryptocurrency
In the current bearish cryptocurrency market, the current price of Bitcoin is US$21,048.91, with a market cap of US$401.43 billion. This popular cryptocurrency has plunged to the level of US$20k to the weakest point since December 2018. The global crypto market has also experienced a drastic crypto crash— from US$1.02 trillion to US$932.86 billion.
Reasons for Bitcoin crypto crash
There was an announcement from one of the top cryptocurrency financing companies known as Celsius Network that has suspended or froze all transactions as well as transfers between accounts. The mission is to stabilize liquidity. Along with this, there is high inflation, looming recession, and adjusting interest rates in the US market showing an extreme market situation. The US Federal Reserve has tightened its interest rate hike. The highly volatile crypto market is linked with the equity market— the decline in the stock market has created a huge impact on the crypto crash of Bitcoin as well as stable coins.
If Bitcoin jumps down the US$20k zone in the cryptocurrency market, there are chances for triggering more margin calls that can lead to a serious consequence— forced liquidation. Crypto investors are expecting the continuation of the crypto crash ecosystem till the arrival of the recession. There is a deepening of cryptocurrency sell-off in the highly volatile crypto market. Bitcoin has fallen below the psychologically important threshold i.e. less than US$19k.
Altcoin prices are expected to collapse after the Bitcoin bear market begins. The Bitcoin crypto crash in 2019 was also a result of the launch of the futures market, allowing crypto investors to short the digital currency efficiently and effectively. Due to the intense selling pressure of this popular cryptocurrency, the Relative Strength Index (RSI) has dropped down to below 30, making short-term crypto investors purchase Bitcoin at the current dip.
With the rough start to 2022, Bitcoin tried to recover steadily at the beginning of 2022. But faced a drastic crypto crash in June 2022, unable to maintain the forward pace to US$68k. Now, crypto investors forecast that if this cryptocurrency continues to follow the trend back in 2018, the price may reach US$16,175 for crypto wallets in July 2022. Recently, it has hit US$17,600 and gained huge strength as the bullish momentum uplifted the cryptocurrency from entering the danger zone. Now, Bitcoin is in the middle of breaking the resistance at US$22k and hit the lowest rock bottom in June 2022 at US$16,175, depending on its trend to follow the 2018 pattern. If it hits the US$16k range, Bitcoin may get ready to surge up into an accumulation phase to drive profit in crypto wallets.