The cryptocurrency enthusiasts believe that the New Year will be a changing period for their bitcoin investment, but this does not happen. Even on New Year, the first day of the cryptocurrency investments for the New Year was very much haunting. There was a massive growth in the prices of bitcoins in October in November in the most popular cryptocurrency but, the New Year is not so suitable for everyone. After reaching the highest price, bitcoin has remained on a downward trend, and towards the end of 2021, bitcoin was very low. People had a lot of expectations from bitcoins to the new coming year, but it was not planned to match the people’s expectations. The cryptocurrency enthusiasts are highly disappointed with the most prominent cryptocurrency globally because it cannot even close a mark of $50,000 after New Year’s Eve.
Many cryptocurrency analysts believe that the bitcoin is towards reaching the death across, which says that it is a massive slump in the recent few months in the prices of bitcoins. Apart from affecting the BTC investors, the downward slope in bitcoin prices also significantly affects the other digital tokens available in the world. In October, bitcoin was standing at a value of 68,500 United States dollars. However, it was all the result of the bitcoin ETF released in the New York securities exchange market. After that, bitcoin prices started to decline, and it has been going down ever since. We can say that according to the prices of first January 2022, it was the worst opening year for bitcoin since 2012. On Monday, the bitcoin stood at a resistance level of 40,000 United States dollars. It led many investors to panic, and the prices started to decline because of the massive sell-off by the investors.
Bitcoin investors believe that it is about to approach the death cross level. It generally means that the 50 days moving average will cross the 200 days moving average of its prices. It says that the bull run is about to end, and therefore, the bearish market will take over the bull market. If it wants to stay away from the death’s cross levels, it has to maintain the prices above US$40,000, and then only there are chances of an increase in its prices in the future. The decline in the prices of bitcoins in this year came after the United States Federal Reserve decided to increase the interest rates on borrowing by about four times. If you are interested in bitcoin trading check the blockchain and sustainable growth what’s the need.
Why is BTC at the grave?
As per the recent data released by different multinational organizations, bitcoin experienced a massive decline in its prices in May 2021. The prices fell from $36,500 to as low as $28,000 in 24 days. The scenario is much worse in comparison to March this year. The prices are ever decreasing because of the Federal reserve’s severe actions towards the increasing inflation in the country. It has become a problem for bitcoin, and hence, strict actions are necessary to be taken by the cryptocurrency market. Bitcoin has already lost almost 40% of its value within the past two months.
Why is death cross haunting?
Death cross means that the prices of a commodity in the market are decreasing, and as a result, they are further going to get lower. The financial market reached death multiple times, but it recently Apple in 1929, 1974, and 2008. However, it is the first time that such a phenomenon is natural for the cryptocurrency market. There are only a few indications that bitcoin was about to reach the death cross-level in March 2022 and June 2021. However, the market managed to recover faster than expected, and hence, people also believe that the same can happen further.
How to react?
There are two types of cryptocurrency investors in the market. One is those who invest for an extended period, and the others invest for a short duration of time. It is nothing else but a simple market situation for long-term investors. However, these fluctuations are very drastic for the small duration of cryptocurrency investors. Moreover, they might also panic according to the falling prices of bitcoins.