Bitcoin continues to fluctuate near $19,000; Will the deep crash finally happen?

ادامه نوسان بیت کوین در نزدیکی ۱۹هزار دلار؛ سقوط عمیق سرانجام اتفاق می‌افتد؟

Bitcoin price candle closed at the end of this week, October 16 (October 24), without much change in the range of $19,000. Analysts have also warned that the end of Bitcoin’s volatility trend is long overdue. Having said that, with the continuation of the current market conditions, should we expect a further fall in the value of Bitcoin in the short term, or will the upward trend finally begin?

To Report Cointelegraph, market data shows a disappointing situation for the “Bitcoin/USD” currency pair at the end of this week; Because the trading of this pair in the last days of last week (Saturday and Sunday) was also without boom.

Hourly chart of the price of the Bitcoin / USD pair
Hourly Bitcoin price chart.

Bitcoin bounced back to the $19,000 range after the release of US economic data set off a series of price traps throughout the week and has so far shown no signs of breaking out of its established price range.

For Michaël van de Poppe, founder and CEO of trading platform Eight, it’s a matter of time when unpredictability returns to the cryptocurrency market.

He told his Twitter followers about this:

Sooner or later, massive volatility will return to the markets after four months of stabilization. Most people still believe the market will continue to trend down, but I think it’s likely [شروع] The upward momentum has increased.

The release of macroeconomic data (inflation data) was the spark for the price of Bitcoin to reach its highest level in the previous week. An anonymous analyst named El Capo of Crypto also believes that the price of Bitcoin will likely see a return to the $21,000 range before the market continues its downward trend.

In a tweet, he mentioned the market situation update before the closing of the weekly candle and said that he believes that the entire market is about to rise in price.

El Capo of Crypto also added in part of his subsequent discussion of the market outlook:

We have not yet entered the surrender phase, but this happened [به‌زودی] will fall

As a result, Bitcoin ended the second week of the usually bullish month of October with a 1.5% decrease compared to the beginning of the month; The worst October performance of this digital currency since 2018 (1397) and much less than its 40% growth in 2021.

Bitcoin/USD monthly return chart
Bitcoin monthly return chart.

The impact of the stock market on the future of digital currencies

Looking ahead, market participants see the current correlation of the stock market and digital currencies as the reason that the short-term outlook for Bitcoin will not be optimistic.

While the Nasdaq stock index saw its first weekly candle close below its 200-day moving average in fourteen years, many social media users attributed the decline to the collapse of the dot-com bubble and global financial crisis. 2008 have compared.

Nicolas Merten, the founder of YouTube channel DataDash, said about this in a post:

The beginning of two bear markets and previous 50-80% falls in 2000 and 2008 were accompanied by a turning point. Bitcoin, however, has never experienced such a situation, so expect the price to drop further.

Weekly chart of the Nasdaq 100 index along with the 200-day moving average
Weekly chart of the Nasdaq 100 index along with the 200-day moving average.

Despite this, not all experts have a bearish view of Bitcoin’s short-term trend. Like Philip Swift, the founder of LookIntoBitcoin, who announced that the current bear market will end by the end of 2022.


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