It seems that the bearish sentiment in 2022 is still looming over the cryptocurrency market. Most cryptos are fell by an average of 75% to date, with little signs of an actual comeback. A few weeks ago, cryptos managed to establish an uptrend that hinted at a potential retracement higher. However, in the past week, cryptos crashed again to erase most gains. Bitcoin, the biggest crypto by market cap, reached back its previous price of $20,000 after breaking it lower in the past 24 hours. Will Bitcoin drop to 10000 $? Stick around as we’ll unveil the important area that confirms this trajectory.
Bitcoin loses 20% in the past 2 weeks – What Happened?
After reaching rock bottom, Bitcoin started to retrace higher from the $20,000 price mark. In fact, most cryptos also managed to follow Bitcoin’s uptrend. Ethereum, the second-largest cryptocurrency by market cap also managed to increase by 100% thanks to the Merge announcement. The increase in crypto prices was not sustainable. Bitcoin reached the high price of $25,000, only to drop back to the current price of around $20,000.
This price drop was predictable as Bitcoin broke its uptrend. In figure 1 below, we can clearly see the break in the uptrend, leading to a Bitcoin price drop back to the support of 20K.
Is Bitcoin BEARISH still?
If we look at figure 2 below, we can see the general downtrend of Bitcoin since the beginning of the year 2022. We can notice whenever BTC reaches a significant price area, it tries to retrace higher. However, this retracement fails, and prices go back to their downtrend. This price action repeated so far 3 times in 2022, where Bitcoin prices attempt to end their downtrend. This is usually coupled with good fundamental news in the crypto market, that lifts the market sentiment higher, but briefly.
Today, Bitcoin is doing that exact same behavior. That’s why many analysts predict another upcoming Bitcoin crash. This can be confirmed as recently, and for the second time, Bitcoin prices breached the $20,000 price mark lower. In the past 24 hours, Bitcoin dropped to $ 19,500. In Q4 2022, prices are expected to drop further. That’s why most people are quoting GoT’s “Winter is Coming”.
Bitcoin Price Prediction – Will Bitcoin drop to 10000 $?
Now that we are prepared for a crypto winter, we need to estimate “when” will Bitcoin price drop. In a previous article, we discussed the potential targets of Bitcoin which are $15,000, $12,000, and $10,000. Those targets should be reached as soon as Bitcoin breaks its strong support price of $18,500.
From there, we expect a surge in the selling pressure, leading to price drops across the crypto market. If you were considering buying cryptos at that time, we advise you to wait for better times.