After a brief consolidation, most crypto enthusiasts expected crypto prices to recover. However, this did not occur as the crypto market continued its bearish trend. Crypto prices have been on a decline since November 2021 with no sign of ending. However, Bitcoin prices reached an important area that might send prices upwards again. Is Bitcoin crash over? Will BTC prices go back up or will Bitcoin price reach $10,000? In this Bitcoin price prediction article, we analyze Bitcoin prices from a technical perspective and assess what might happen soon.
Bitcoin price lost -50% YTD: What happened?
The year 2022 started on a bad note. After Bitcoin reached an all-time high price of $69,500, prices retraced heavily down to $47,000. From there, prices slowly started to fall and went on a bearish trend. In a previous article, we predicted a crash in Bitcoin prices towards $20,000-22,000 as prices managed to breach the strong support of $28,000. This is exactly what happened, as current prices are sitting around $22,300.
Why is Bitcoin crashing?
There are many factors that contributed to the decline in cryptocurrency prices. Since Bitcoin has a relatively high dominance over the cryptocurrency market, it is natural that Bitcoin leads the way in the bearish trend. However, there are many fundamental factors that also contribute to the overall decline:
- The cryptocurrency market was heavily overbought in the last 2 years
- Snowball effect of the crash since November 2021
- Problems occurring recently related to blockchain tech (UST’s collapse, Gas fee problems…)
- Negative image in the mainstream media (Warren Buffet’s speech)
- Technology commodities in the red zone
- Ukraine war
Bitcoin Price Prediction – is Bitcoin crash over?
It is still very early to say that the crypto crash and Bitcoin’s crash in specific is over. Usually, in order to assess whether a crash ended, we need many technical confirmations. The first one would be a consolidation around a key price area. For Bitcoin, if the crash was to end, we will see in the coming days or even weeks a consolidation around the current price of $22,000.
Additionally, we will see small green days bringing crypto prices slightly higher and breaking the downtrend line. In figure 2, we can see that this yellow line can signal a halt to the downtrend after a medium-term consolidation.
Will Bitcoin Price reach 10,000 $?
On the flip side, if prices fail to consolidate higher than the $20,000 price mark, they will most likely break this support price lower and reach the next support areas delimited by the following important prices: