Even though bitcoin prices are falling in recent times, the outlook remains positive and constructive. The prices recently experienced a downfall after reaching their highest price of all time at over $60,000. However, now the prices have fallen below the support price level of $57,653.
October 23rd saw a downfall in the prices of bitcoin and has opened the doors for even further pullback in the prices of the most popular cryptocurrency in the market. Lead researcher at Stack Funds, Lennard Neo, said: “inflows for Bitcoin have skewed to spot accumulation as opposed to speculation, as investors match their expectations towards a longer-term horizon – signalling less propensity to sell.”
Therefore, just because there has been a mere downfall of 18%, it won’t collapse the value of the cryptocurrency too much as many people seem to be in it for long-term gains rather than short term. So even though there are some big sellers, many people are buying up those shares to keep hold of for the chance to still make big gains in the future, which is a sign of healthy trading on 1kdailyprofit.app
Many analysts from different leading companies around the globe dealing in digital assets have told in their interviews that an inevitable downfall in the prices of cryptocurrencies is obvious. It is because prices are always fluctuating and experiencing higher and lower prices in the market is the nature of cryptocurrencies.
Many other analysts also believe we will see another prominent uptrend market in the coin prices at some point. And that is because, despite some crazy downfall in prices, people keep trading in bitcoins because there is a hope that it will be the future of trading. Bitcoin was experiencing lower prices between July 20th and September 29th this year, but on each occasion that the prices dipped, they soon recovered.
Before hitting the all-time highest price of bitcoin, it was being traded at $56,000 recently. However, the tables turned, and it reached its highest price of all time, which was $68,954 this month. There are no apparent signs of strong catalysts playing a massive role in the increasing price of cryptocurrencies, ever since Tesla’s Elon Musk began tweeting and causing the values of smaller cryptocurrencies to their peak.
Due to the lower participation of the catalyst in the market, the prices remain balanced in future for a short duration of time. Also, the vast investors who purchased many bitcoins at the recent high prices are not doing the same. Because of the lower participation of the global macro uncertainties, the prices of cryptocurrencies like bitcoin are muted.
One of the most prominent reasons the cryptocurrency market will experience a deeper drawdown is the actions taken in the traditional money market. Recently, Jerome Powell was appointed as the chairman of the Federal Reserve by the United States President on Monday.
Due to this, analysts believe that there will be an increase in the central bank rates to control the ever-increasing inflation in the market. Just after the appointment of the chairman, the United States early gains were minute, and the prices of gold and silver fell drastically. Apart from this, the dollar index stood at a 16 month highest price of $96.60 on Tuesday.
The bitcoin support price level is $57,653, and its prices slipped down from this level into resistance. It happened on Monday, and because of this, the market is at a slight shock. For all the relative strength indexes, the breakdown point is backed by the below 50 bearish reading. If the prices keep on falling just like they did recently, there will be a significant impact on the cryptocurrency market.
But it isn’t just bitcoin, other cryptocurrencies will experience pressure because of the falling bitcoin prices. The immediate support prices are considered to be $53,000, according to some. On the contrary, Stack Funds said that the critical support zone for bitcoin will be $50,000 and $51,000.
Bitcoin has been falling since the last highest price of all time of about $69,000. Some analysts believe that it is just a regular fluctuation in the prices of bitcoin, but soon, the bitcoin prices are expected to increase. Especially with the announcement that El Salvador will be creating a Bitcoin city.
It is one of the most prominent reasons investors and traders of the triple currency market withdraw most of their money from bitcoins. On the other hand, people have faith in bitcoins due to their capacity to reach the highest price after experiencing a dip in their prices.
For even more tech news, click right HERE.
