Bitcoin has once again lost massively in value within a short period of time. The price is now just over $35,000. The main cryptocurrency could actually turn into a bear market and continue lower. Let’s talk about 3 things that need to happen for us to become bullish again.
#1 Bitcoin Price between $38,000 and $43,000
The first step towards a possible bullish reversal would be more consolidation between the $38,000 and $43,000 levels. A new support level can be established in this area, which prevents the cryptocurrency from slipping into the $28,000 to $35,000 range.
If a solid support level builds, bullish weeks could ensue as Bitcoin is the most “oversold” it has been in a long time. The Relative Strength Index (RSI) is the lowest since March 2020, when the COVID-19 crisis hit the markets. Higher purchasing power could therefore become likely in the coming weeks.
#2 Stimulate Retail Investor interest in Bitcoin
Previously, small investors, in particular, have been responsible for the massive price gains during the bull markets. In 2020 and 2021, there was a major institutional adoption of Bitcoin. In order to be able to celebrate big price gains again, small investors have to get back on board and gain confidence in the cryptocurrency.
Now is an ideal point to get in cheaply. Buy bitcoin on crypto exchanges Binance , Coinbase , Kraken and Bitfinex !
The influence of external events such as regulations has increased in the last 2 years since the behavior of the large institutional Bitcoin addresses depends on it. Nevertheless, the mass of small investors still has great purchasing power and could move the BTC price up again.
#3 Adjustment of Bitcoin to the new Monetary Policy
It looks like US monetary policy will tighten again in the coming months. The central bank FED announced that they intend to raise interest rates again. This is to counteract inflation. The low-key interest rates in particular have helped Bitcoin extremely in the past.
The rate hike announcements were extremely negative for the Bitcoin price as many speculative investors now sold their positions. However, if monetary policy is adjusted and the markets stabilize despite this, the price of the most important cryptocurrency could also stabilize again and ultimately rise again.
You can now buy Bitcoin cheaply on the crypto exchanges Binance , Coinbase , Kraken and Bitfinex .
