Since last November, bitcoin (BTC) has now lost 69.20% of its value from its all-time high. Is this the end of encryption? Or is this an opportunity to seize? Let’s consider the state of bitcoin in the long term.
Long term chart analysis
At first glance, bitcoin is in a very strong long-term downtrend. In fact, its price recently broke a significant support level around $30,000. In addition is the fact that the price has yet to break above the weekly Moving Average 200.
At this rate, the price of digital gold may go down again. According to the worst case, its price will reach $10,000, or an 85% drop. We will remain vigilant, there is no sign of a trend change at the moment.
For some, this meteoric decline is a sign that crypto is over. In fact, they think their value will continue to deteriorate since they are overvalued assets. Others, confident in BTC’s fundamental value, believe this drop is a historic buying opportunity.
What should be done?
In the long term, the crypto market, led by bitcoin, is facing a major depression. So far, there are few signs that bitcoin price is going to start a long-term uptrend.
So far, the best thing to do is to trade cryptos by taking short-term positions.
However, here are the features to watch out for to avoid missing the next train towards $60,000 and beyond:
- the 200 MA (200 moving average) over a weekly period;
- The volumes;
- The main levels ($10,000 and $30,000).
Does bitcoin (BTC) have a long-term future?
It is certain that bitcoin has a long-term future. Its value is supported by very strong underlying projects. With the advent of Web 3.0, it is certain that cryptos will have their place in modern finance. This drop in price could be an opportunity to buy bitcoin (BTC) at a low price. Remember, patience is golden.
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Cointribune editorial team
Senior Web Editor for 3 years, I specialize in cryptocurrency, blockchain, trading, and NFT.