Following the Terra/Luna stablecoin collapse and given the ongoing fears that more tragedy is on the way, terrified investors are fleeing, sending the crypto market into freefall. However, some people continue to believe and have faith in brighter days.
Even if past pricing behavior cannot predict future results, it is unquestionably a marker because patterns tend to recur. Since the beginning of the financial markets, the best traders have employed technical analysis, and there is now sufficient price data for Bitcoin to do so.
After the significant upheaval caused by Luna Terra and Bitcoin reaching $25K, speculative claims that Bitcoin would eventually go to zero, that altcoins were a scam, and that the market would be completely devoid of liquidity circulated online.
The future of Crypto
As investors fled riskier assets amid macroeconomic uncertainty, the price of bitcoin fell below $21,000 on Thursday. Rising inflation, a wobbly stock market, increasing interest rates, and concerns about a recession are just a few of the issues causing significant economic unease.
Prabhdeep Singh, a passionate investor since the early days of Bitcoin, has observed these market waves. He claims that fear periodically captures the market. Fundamentally minded institutional investors wouldn’t change their positions. The market moves as a result of the fear that regular investors experience.
Since peaking at US$69,000 in November of last year, Bitcoin has fallen more than 70%. Numerous job cuts have also been made at several well-known cryptocurrency companies, including Coinbase and Crypto.com, due to the volatility and rate increases that restrict the flow of cheap funds into unsafe investments.
Crypto experts have always noted that the industry cannot disappear quickly. In addition, investors have been advised to start doing research on the projects or currencies they want to invest in before investing.
Clearly, 2022 is not the year that cryptocurrency investors had hoped for. Furthermore, there is a good chance that the price of bitcoin won’t reach $100,000 in 2022. Cryptocurrency markets, however, are simultaneously quite unpredictable and highly volatile.
Charts are similar to lifelines in that they never point in a single direction. There will always be ups and downs; those that are a part of the broader picture will stay, while the others will leave feeling lost.