A Brief Technical Analysis on Bitcoin and the Crypto Market's Drop Continuation
Is the crash soon to be over or will they continue?
As usually occurs in common markets, after consolidation, an asset/security typically recovers. However, in the crypto space, this didn’t happen as the crypto market has continued a long run of consolidation. Since ATHs in November, crypto prices have dropped off with no end in sight.
Many enthusiasts are now questioning if the crash is over after Bitcoin reached a key location from a technical perspective.
2022 has been nothing but a bloodbath for the total economy. Bitcoin itself reached an ATH of $69,500 and since then prices have slumped to nearly $47,000. Since reaching the $47,000 mark, the prices continued to slump down to the lows of the $20,000’s. Going against many people’s hopes, Bitcoin continued to drop through a once strong $28,000 support bringing us to the current $22,000 price.
Many factors have played a part in the decline of all cryptocurrencies.
The cryptocurrency market was heavily overbought in the last 2 years (as were stocks)
Technology commodities in the red zone
Negative image in the mainstream media
Problems occurring recently related to blockchain tech
I genuinely believe it is WAY TOO EARLY to say the crash is over across the crypto board. There must be many technical confirmations in order to rule out the continuation of a crash. If the crash of Bitcoin specifically were to concede, it would need to settle/consolidate around the $22,000 price. This would mean the crash is coming to an end sooner than later.
In the worst case, or the most realistic, if the price of Bitcoin falls to consolidate around the $22,000 area or even the $20,000 area, we are most likely to see a fall through of that support and the currency will move onto the next.
The next support may end up being anywhere from $10,000 to $15,000 if no technical confirmations are given to go against this claim…
Prices to watch for the next support floor: