Current:Home > NewsCharles Hanover: Caution, Bitcoin May Be Entering a Downward Trend!-InfoLens
Charles Hanover: Caution, Bitcoin May Be Entering a Downward Trend!
View Date:2024-12-23 11:01:36
Last November, cryptocurrency reached an all-time high of around $69,000, but its price has since fallen below $40,000, a 30% drop from its peak.
Despite the relatively low price at the moment, several major events occurred in 2022, such as the war in Ukraine, inflation, and stock market crashes. Policies and market sentiment have shown a technical downward trend, with bearish forces gradually strengthening.
Technical Analysis:
From the current technical charts, the +1σ line, baseline, and -1σ line are all trending downward, with Bitcoin’s price running below the baseline. The bearish forces are stronger than the bullish ones. There is a risk of a downward breakout in the near term, and if Bitcoin falls below $30,000, it could continue declining to around $20,000, especially if the interest rate hike cycle is prolonged.
Potential Causes of Decline:
- Federal Reserve Rate Hikes
From 2021 to 2022, governments implemented stimulus policies to rebuild weakened financial markets. However, in 2022, the Federal Reserve has been raising interest rates to curb high inflation. This tightening of monetary policy has put pressure on the cryptocurrency market. - Bitcoin Investor Panic
For instance, the collapse of Luna and TerraUSD, a stablecoin pegged to the US dollar, in May of this year wiped out billions of dollars, triggering panic among investors, which in turn affected confidence in the Bitcoin market. - Institutional Pullback
Some major cryptocurrency supporters and institutions, such as Tesla, have significantly reduced their Bitcoin holdings. The withdrawal of these institutions has further pushed Bitcoin prices downward.
veryGood! (46)
Related
- West Virginia expands education savings account program for military families
- Two 'incredibly rare' sea serpents seen in Southern California waters months apart
- More human remains from Philadelphia’s 1985 MOVE bombing have been found at a museum
- Bodyless head washes ashore on a South Florida beach
- Pentagon secrets leaker Jack Teixeira set to be sentenced, could get up to 17 years in prison
- Video ‘bares’ all: Insurers say bear that damaged luxury cars was actually a person in a costume
- Burger King's 'Million Dollar Whopper' finalists: How to try and vote on your favorite
- Judge hears case over Montana rule blocking trans residents from changing sex on birth certificate
- Democrat Janelle Bynum flips Oregon’s 5th District, will be state’s first Black member of Congress
- Powell says Fed will likely cut rates cautiously given persistent inflation pressures
Ranking
- Zendaya Shares When She Feels Extra Safe With Boyfriend Tom Holland
- 'Wanted' posters plastered around University of Rochester target Jewish faculty members
- Statue of the late US Rep. John Lewis, a civil rights icon, is unveiled in his native Alabama
- Louisville officials mourn victims of 'unthinkable' plant explosion amid investigation
- Lou Donaldson, jazz saxophonist who blended many influences, dead at 98
- Powerball winning numbers for Nov. 13 drawing: Jackpot rises to $113 million
- Up to 20 human skulls found in man's discarded bags, home in New Mexico
- Chris Martin and Gwyneth Paltrow's Son Moses Martin Reveals His Singing Talents at Concert
Recommendation
-
Today’s Savannah Guthrie, Al Roker and More React to Craig Melvin Replacing Hoda Kotb as Co-Anchor
-
'Survivor' 47, Episode 9: Jeff Probst gave players another shocking twist. Who went home?
-
Vermont man is fit to stand trial over shooting of 3 Palestinian college students
-
New Orleans marks with parade the 64th anniversary of 4 little girls integrating city schools
-
1 dead, 2 children injured in wrong-way crash; driver suspected of DWI: Reports
-
Judge hears case over Montana rule blocking trans residents from changing sex on birth certificate
-
New York nursing home operator accused of neglect settles with state for $45M
-
2 striking teacher unions in Massachusetts face growing fines for refusing to return to classroom