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Bitcoin: the beginning of a bigger fall?

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These last few weeks have been complicated for the king of crypto-currencies. Bitcoin continues to see its price drop and many signals point to a continuation of this trend, at least in the short term.

Bitcoin just broke its trendline from below

Since the beginning of the year, Bitcoin has been going back and forth within a range between $36,000 and $48,000. However, the price of Bitcoin does not seem to give precise directions as to what is to come, whether it is up or down.

It is held by support near $36,000 and blocked by resistance near $48,000. No camp, buyer or seller failing to take control.

For the first time, Bitcoin has just broken its bullish trendline from below, a less than optimistic signal for proponents of a bullish scenario on the crypto-asset leader.

Since January 2021, this bullish trend line served as support for Bitcoin which therefore pushed it downwards. The buying pressure thus seems to have fallen on the asset over the past few days, which has led to a drop in the price, which has stabilized for the time being around $38,000.

Bitcoin back towards $20,000?

 

Faced with uncertainty and numerous bearish signals, some commentators see Bitcoin falling back towards $20,000. Even if nothing is to be excluded, such a scenario seems unlikely since it would require a massive sale, in particular on the part of institutional players.

Multiple institutional players, big companies in the lead, precisely keep their bitcoins. Tesla, for example, owns almost $1.26 billion in bitcoins and has no plans to sell them. Similarly, the Grayscale investment fund keeps its assets in BTC and even wants to strengthen its positions in other crypto-assets. Other players in the crypto ecosystem, this time, have also strengthened their position in Bitcoin such as Terra for its cash in support of its stablecoin, the UST.

Other indicators, we chain this time, reinforce this optimism. For example, we can see that bitcoins are coming out of exchanges, from a Hodl perspective on the part of many players. Moreover, for some analysts, the relative good performance of Bitcoin in a more than delicate macroeconomic context (war in Ukraine, inflation, etc.) seems to be an encouraging signal for the rest of the year.

It is difficult to predict the future of the course of the most scrutinized asset on the crypto planet . It is possible that Bitcoin will continue to fall slightly even though a return to $20,000 seems unlikely. It could be a phase of correction and accumulation before a recovery as we experienced in the summer of 2021. However, a long-term bearish scenario cannot be ruled out and we will carefully monitor the situation. evolution of Bitcoin in the coming weeks.

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