Bitcoin seems to be crashing again. Bitcoin crashing is not good news for short-term holders. So, the concern is about how Bitcoin will be heading towards in the long term. Investors who do not get the direction correctly are going to be the losers. It is not strategically for someone who is not clear about the direction to play.
In the short-term, the trend is bearish. From a classical approach, the current breakdown of Bitcoin price would be considered to be bearish. The moving averages are not reliable all the time because sometimes the trends dictated by the moving averages can be misleading. The moving averages now state that the market is moving up on an average and that the selling is hugely below the high. This is a chronic problem in volatile markets.
Some of the trends happen outside of the price range. Some events influence the price, like the recent speech of the president of China. Some situations related to capitulation might look important on the chart later; however, it will exist only for a few minutes and will trade a little volume. If such trends should be reversed, it will need a catalyst. Sometimes the hodlers will find this an opportunity to buy some cheap coins.
The price of the Bitcoin is now over $8,000, and this price has bounced wildly in recent months, and the crypto traders and investors are searching for direction. The regulators are struggling with dismal trading volumes of Bitcoin.
The lightening network, which has been designed to provide for smaller bitcoin transactions to take place quickly and cheaply, might likely be the catalyst for the next bitcoin Bull Run.
Tim Draper, who recently spoke at the Q&A session at the Malta AI and Blockchain Summit early this month, stated that he expects for the Bitcoin price to reach a quarter-million dollars in 2022 or 2023. He further stated, “I think bitcoin payment processors are going to open the floodgates.”
Of note, Tim Draper called a previous price prediction of $250,000 per Bitcoin conservative. No matter what the trends dictate, Bitcoin has very often come out with the full force to reassure investors to prove the Bitcoin is far from dead.
Alex Kruger opined that the governments might want to prevent the mass adoption of Bitcoin and therefore push the price to under $1,000 for a very long time. If this should happen, it will have most people to lose interest in the token permanently.