In the last week, the prices of the most popular cryptocurrency, bitcoin, started to decline drastically after reaching $69,000. It was the price where that bitcoin had never reached before. Therefore, the market analysts were sure that cryptocurrency would reach over $100,000. However, things changed. It started to decline right after reaching the highest price of all time, and this was the place where investors were worried. Again, it recovered on Monday but started falling again. Now, bitcoin was about three $59,000 mark but failed to do so again. So, what will be the future of this most popular cryptocurrency? The recent failure of bitcoin to reach the $59,000 mark is considered the outcome of discovery regarding the Covid variant. SPX rallies are being sold to date, but the others are not even close to recovering the recent prices. Therefore, the markets are no closer to reaching the all-time highest price and remain high as expectations of the industry.
The global risk, along with the Federal reserve commentary, has been the two most important reasons for the downfall of the cryptocurrency market. The United States recently launched a new infrastructure bill that will impose some restrictions on the cryptocurrency players. The brokers have to report all their earnings and transactions to the Federal Reserve, which will create problems for the investor and a broker. Apart from this, several other restrictions are imposed by different countries on bitcoin, which can be the prominent reason for the downfall in the prices of bitcoin.
Bitcoin will have a slight fall shortly, and therefore, it is perhaps the right time for investors to get high leverage. Even though the prices of bitcoins are falling, the online data remains entirely on the side of the bullish market. As of now, the bitcoin prices are lower than before and therefore, it provides an opportunity for investors to buy more bitcoins. It is a time when investors get the opportunity to stack up bitcoin to sell them at higher prices and make huge profits. Also, some whose players are going into liquidation of their cryptocurrency to invest in more stable assets like United States dollars.
The technical data
Now, bitcoin has fallen by 22% from the all-time highest price of $69,000. However, the greed of fear is still not decreased in the investors. According to the time frame charts on like the News Spy App, the market is expected to have a bullish phase but is still going lower and lower according to the price action for the entire year. Technicals of the cryptocurrency market show that provides an evaluation of bitcoin. It has always remained in the positive developments. There has always been a bullish divergence if you look between 4 hours to 8 hours. Also, the price making is lower and lower; however, the RSI making is even lower than that. The daily movement of a bitcoin is moving towards flattening. Therefore, it may soon be trending higher, which is considered a positive development for a short duration of time.
The Bull players in the cryptocurrency market as opposed to holding the near time lower prices at the $53,300 mark. Also, with this price, they can start making higher profits and lower losses to make a base for crypto transactions. If they fail to hold this price dollar mark, bitcoin will again fall towards the $53,000 mark and may also reach $50,000 in future. As the SPX is experiencing an increase, bitcoin has been holding up quite well in the market. It is a condition that looks similar to September and October. At this time, the risk of investing money in bitcoin was lower than the SPX, making it more stable and profitable. If the cryptocurrency investors keep selling bitcoins due to the approaching Covid variant, it can reach the 21 week lowest price of $51,000.
As cryptocurrency investors and minors are selling bitcoins at a vast scale, it is a fundamental matter of concern. Also, it will create a hindrance in the path toward reaching the bull market again after the downfall in bitcoin prices. When the results diminish for the bitcoins, it will reach multi-year low prices, which is pointing towards the starting bear market. On the other hand, if the declining reserves trend carries throughout 2021, it will create a powerful trend of accumulation which may remain until the ending of next year.