Bitcoin still exists but one can easily be made to think otherwise while looking at the crypto market conditions. Experts’ predictions suggest that Bitcoin’s movement towards the recovery phase is rather “sluggish” and it will take time to go back to higher levels.
This week commenced with a bad start not only for Bitcoin but for all cryptocurrencies of the world. However, the impact upon Bitcoin was severe than any other as its value fell into the sinkhole and became US$ 41,900. It came to a level that nobody was even imagining before going into the next year.
Before the crash, the formidable resistance point for Bitcoin was the US$ 60,000 price. Now this formidable resistance has been altered and the new formidable resistance point for Bitcoin is US$ 50,000.
Now there is fear growing amongst the crypto economy. The fear is that experts believe that another major upset for Bitcoin is expected, even before the initiation of the recovery process. For the anticipated fall, experts believe that the impact would be massive and deeper than the last one. It is therefore essential for analyzing the odds for Bitcoin.
Bitcoin is now in the price range which is lower than US$ 50,000 i.e. US$ 48,000 exactly. If Bitcoin’s past seven days’ progress is analyzed then still Bitcoin is falling 16% short of its past 7-day price range.
In November, Bitcoin succeeded in achieving its ever best value of US$ 69,000. If the value loss is assessed from the value of US$ 69,000 to date then Bitcoin’s loss is approximately 39%. Although it seems that the loss is enormous but Bitcoin had seen even worse than that.
In addition, most of the price predictions for Bitcoin have currently vanished. According to experts, Bitcoiners won’t be able to see pre-year end “Santa Claus rally”. Instead, they are suggesting that no recovery phase for Bitcoin is forthcoming any sooner.
The experts believe that the recovery process will start no sooner than 2022. In fact, another sharp value decrease is expected before 2022. They are however not denying the possibility of quick recovery as well.
Experts believe that inflation has started to show up. Usually, it is believed that cryptocurrencies are the best antidote against inflation. This has proven once again when right after the inflation, Bitcoin started to show resistance. This might be due to because there is a new consumer price index (CPI) in the crypto market. Bitcoin, through its bulls, will definitely try to utilize this CPI for the purposes of recovery, said experts.
Even Michael Saylor, the CEO of MicroStrategy, also took notice of the two events i.e. fresh CPI and inflation. He suggested that investors would be more than willing to get Bitcoins on the basis of inflation and CPI.