Bitcoin Faces a Bear Market for the Whole of 2022
Macro-economic factors have been responsible
Bear market may continue as analysts predict recession in 2023
There were high expectations for bitcoin (BTC/USD) to exceed $68,000 at the end of 2021. Investors started betting on $100,000 as the next price level. Prominent investors including Cathy Woods of Arc Invest gave BTC a price target of $500,000. There is no doubt that this level can be reached because bitcoin is still very young, and the potential is huge. But does this mean you should be optimistic about 2023?
Well, it is too early to judge, but the macro situation demands that we lower our expectations. For a year now, bitcoin has been bearish due to economic hardship and concerns of an impending recession. In fact, analysts predict a negative GDP for the US in the first three quarters of 2023. This would mean a more bearish market for bitcoin and stocks.
but what does buy bitcoin mean now? At less than $17,000, BTC is a bargain. You will consider yourself a smart investor when the bull market returns. But you may be out of money for a while before that happens. This is because the bitcoin bear market is still going on, and you may get a few negative pips before you make a profit. However, as you may have noticed, BTC has been relatively stable above $16,000. Is this a potential bottom?
BTC starts short term recovery above $16,000
Considering the long term bear market, BTC has found stability in the $16,000 support area. From the daily chart outlook, the cryptocurrency has started a recovery at this level. It trades on the short-term trendline. The RSI moved above the 50-midpoint level on entry of buyers.
Will Bitcoin Sustain the Recovery?
We consider short-term growth relief rallies btc price It is yet to recover from a prolonged recession. Should the current gain continue, BTC may face resistance at $19,000? However, we remain cautious about buying BTC for now as the price remains vulnerable to a bear market.
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