Here’s why this expert thinks Bitcoin prices could fall
The data on Bitcoin price movement shows that it has struggled. Bitcoin has rarely gone down to the $18K price in the last three weeks. It mostly held the price level of $19K for the last week.
It regained the $20K mark on Tuesday last week, but returned to the key level. As of Friday, it was trading at a price just over $19K.
Although the price of Bitcoin has been low, the price movements have been quite steady. The same cannot be said for the majority of other digital assets. The broader crypto market remains uncertain even as investors battle rising inflation.
Tighter monetary policy from the Federal Reserve and geopolitical crises are other areas of concern for many investors.
Detail of BTC price
Over the past 30 days, the largest cryptocurrency has remained around the $20K price level. According to experts, this may not be the end of the crash in the price. A report revealed that a price action warning indicator, Bollinger’s Band Width, has reached its narrowest point. Experts compared the current bandwidth data with 2020 to detect a 5-fold narrowing movement.
Only 1 time, out of the 5, saw an increase, and that was the record high of $69K last October. The remaining 4 times revealed that BTC has fallen by about 16% in the last 20 days.
A swing is likely to occur from the current position of BTC. Chances are that this could be a further drop in price, according to the experts’ point of view from the narrow Bollinger band width.
Investors still feel uneasy about the crypto market, considering the historic collapse of the original token of Terra LUNA. Also, the general crypto market is currently trading with high volatility in response to the regular market.
Will Bitcoin Recover Soon?
The number of available Bitcoins is currently 2.33 million, which is the lowest in 4 years, according to Glassnode. Meanwhile, around $2 trillion has already been lost in the global market capitalization from November 2021 to now.
Bitcoin has fallen by about 60% in the past year and 1% in the past day. This move brings the price to approximately $19,500. There is still a need to watch the market for a possible reversal.
Although the chances are slim, experts suggest that the market may witness a bullish turn in a short period of time. All it takes to change the bottom of Bitcoin’s trading range is a single piece of news about digital currency regulation.
Meanwhile, the general crypto market is still anticipating the release of the US inflation date estimated for October 13.
Featured Image from Pixabay, Charts by TradingView
