Last year bitcoin was already far from the historical high it reached in the spring. This year is not better, quite the opposite. Bitcoin price has fallen 47% since July 27, 2021 after hitting a new high in November. With a macroeconomic situation that has deteriorated in the meantime, it is difficult to decide on the evolution of their price in the coming weeks.
2021, a year in which the value of bitcoin increases and decreases
On July 27, 2021, bitcoin (BTC) was trading at $40,019. Since the ATH arrived at Classes in May, the various falls in the market weakened investor confidence. However, the macroeconomic situation remained favorable for the financial markets thanks to low key rates. In fact, the summer was not yet over when the cryptocurrency market started to rise again. The rise of several altcoins such as Solana and Avalanche further contributed to the confidence recovery. Thus Bitcoin was able to reach a new HIGH at more than $66,000 on November 09. Unfortunately, this euphoria was quickly replaced by market decline and the past six months have not been easy.
The one after another falls in the price of bitcoin
Although the cryptocurrency market had already been in decline since November, the start of the war in Ukraine was the true beginning of the bear market as we know it. Rising interest rates, the Luna crash, rising inflation, repeated bankruptcy, all its ingredients contributed to the successive collapse of bitcoin (BTC). Two weeks ago, bitcoin and ethereum already experienced a dark weekend. In fact they had lost their historical support of $20,000 and $1,000. Since then, these supports have been regained and then lost again. This year’s summer period is hardly a festival for cryptocurrencies as bitcoin struggles to maintain this support.
Can we expect the next uptrend?
Trade expert Michaël Van de Poppe believes that it is difficult to know whether we have finally reached a bottom. However, we are probably close. In fact, bitcoin was accepted as a reserve of it value and all cryptocurrencies have evolved positively over the past year. So bitcoin is unlikely to fall below $10,000. We can expect a rebound even if it reaches the $12,000 threshold. On the contrary, if bitcoin manages to break above $23,000, we can expect at least an increase up to at least $29,000.
Although the cryptocurrency market is still gloomy, the price of bitcoin is in a moment of uncertainty. Much lower than its price for 2021, however it is more accepted. It must be hoped that it will be enough to bring new life into it.