How low will Bitcoin go?

How low will Bitcoin go? 

It’s the million dollar question, the question we would all love a definite answer for. Unfortunately it is also a very in depth question that depending who you ask will most likely always get a different answer.

With Bitcoins price falling below $20,000 investors are starting to worry as the popular Crypto currency loses a major support. Bitcoin has been trading in a tight range for the past week which can be great for experienced traders however for the average joe like myself this can be a very difficult market to trade. 

With all the current economic events happening around the world it has made the prediction game harder than ever. With some people saying Bitcoin will go as low as $10,000 and others saying this is the bottom, so who do you trust? Will Bitcoin follow a similar pattern and time frame as 2017 or will everything happen quicker due to mass adoption? These are all questions that require a lot of research and I highly recommend making up your own decision and sticking with it. There are so many so-called Crypto gurus online these days it can be hard to find realistic answers to your questions, so that is what I am going to try to do for you today. Give you a realistic answer on how low will Bitcoin go?

So why is Bitcoin dropping?

Ever since the Federal Reserve's inflation report in May and the 0.75% interest rate hike both the Crypto and the Stock market have been struggling to gain any upwards momentum. Pair this with other macro economic events such as the still moving war in Ukraine and the strugglin housing market this creates the perfect environment for Stock and Crypto a like to struggle in.

So with inflation hitting a 40 year high how low will Bitcoin go?

During the 2017 run and the following bear market the Crypto market had a clear decoupling from the Stock market however we are now seeing a relationship between the two and seeing them both follow the same patterns. This tells us that the Crypto market is now reacting to macroeconomics more and will continue to do so. 

Now that Bitcoin has broken its $20,000 support, where is the next support level? Doin technical analysis on the charts you can see a minor support at $17,000 however the next strong support is at $12,000. Not only is this a support but it is also the point the Bitcoin price has to come down for it to reach its long term uptrend. This is the next price I would be looking at closely. 

Bitcoin hasn’t seen any real upwards momentum since November of 2021 when it reached its peak price of $69,000. We all know what happened after that. It is safe to say we have been in a bear market since November 2021 which accounts for 7 months of downwards price action. The Bitcoin price has seen a couple relief bounces since then but nothing to convince us that the bear market is over.

Will Bitcoin crash again?

Well, it all depends on what you classify as a ‘crash’. Will Bitcoin drop again? Most likely.

Now this isn't necessarily a bad thing as in the long term I am confident the price will bounce back and possibly even break the previous all time high. So buying at these lower prices could pay off.

At the time of writing this we are 70% down from the all time high which means Bitcoin will need to gain 232% to climb back to $69,000. As a potential investor this number sounds quite nice doesn't it? 

It is also worth keeping in the back of your mind that even though this bear market may resemble the 2018 bear market in a lot of ways, we are in a completely different macro economic state. Both for Crypto and the Stock market.

We have record high users for Crypto and more and more Web 2 companies adopting Crypto both as payment methods and as infrastructure. This could signify that this current bear market will be shorter than the previous as more and more money flows in holding the market up.

Should I be buying Bitcoin right now?

The old saying goes ‘never invest more than you can afford to lose’ and in Crypto this is especially true. If you have some spare money floating around you would like to invest, Crypto can be a great option, as long as you can stomach the 20%+ swings either way. Chances are we are not at the bottom now however there are very few traders that can manage to catch the exact bottom. Once again the old saying ‘time in the market beats timing the market’ also applies very well to Crypto.

So when should I be buying Crypto and Bitcoin?

Have you heard of DOllar Cost Averaging or DCA? As an investor of any asset this is most likely the most powerful tool you can learn and use, whether you are an experienced trader or someone just dipping their toes in the water DCA’ing into assets is the best way to buy and average yourself a good entry price.

DCA is when you buy the given asset with only a % of your portfolio or what you are wanting to invest at a time. This allows for you to enter at different price points and if the asset crashes it means you still have capital on the sidelines you can deploy. This allows you to have a lower average entry price.

So let's say you have $1,000 you want to buy Bitcoin with. A great way to DCA in would be investing $100-$200 say once per week or each time you notice a decent dip in the assets price. This way you have 5-10 entry points rather than just one.

Hopefully this has given you somewhat of an idea of the current market conditions and will help you in deciding on your own game plan for the rest of your Crypto journey.

If you want Crypto news and information before anyone else be sure to sign up to our newsletter below.

How low will Bitcoin go? 

It’s the million dollar question, the question we would all love a definite answer for. Unfortunately it is also a very in depth question that depending who you ask will most likely always get a different answer.

With Bitcoins price falling below $20,000 investors are starting to worry as the popular Crypto currency loses a major support. Bitcoin has been trading in a tight range for the past week which can be great for experienced traders however for the average joe like myself this can be a very difficult market to trade. 

With all the current economic events happening around the world it has made the prediction game harder than ever. With some people saying Bitcoin will go as low as $10,000 and others saying this is the bottom, so who do you trust? Will Bitcoin follow a similar pattern and time frame as 2017 or will everything happen quicker due to mass adoption? These are all questions that require a lot of research and I highly recommend making up your own decision and sticking with it. There are so many so-called Crypto gurus online these days it can be hard to find realistic answers to your questions, so that is what I am going to try to do for you today. Give you a realistic answer on how low will Bitcoin go?

So why is Bitcoin dropping?

Ever since the Federal Reserve's inflation report in May and the 0.75% interest rate hike both the Crypto and the Stock market have been struggling to gain any upwards momentum. Pair this with other macro economic events such as the still moving war in Ukraine and the strugglin housing market this creates the perfect environment for Stock and Crypto a like to struggle in.

So with inflation hitting a 40 year high how low will Bitcoin go?

During the 2017 run and the following bear market the Crypto market had a clear decoupling from the Stock market however we are now seeing a relationship between the two and seeing them both follow the same patterns. This tells us that the Crypto market is now reacting to macroeconomics more and will continue to do so. 

Now that Bitcoin has broken its $20,000 support, where is the next support level? Doin technical analysis on the charts you can see a minor support at $17,000 however the next strong support is at $12,000. Not only is this a support but it is also the point the Bitcoin price has to come down for it to reach its long term uptrend. This is the next price I would be looking at closely. 

Bitcoin hasn’t seen any real upwards momentum since November of 2021 when it reached its peak price of $69,000. We all know what happened after that. It is safe to say we have been in a bear market since November 2021 which accounts for 7 months of downwards price action. The Bitcoin price has seen a couple relief bounces since then but nothing to convince us that the bear market is over.

Will Bitcoin crash again?

Well, it all depends on what you classify as a ‘crash’. Will Bitcoin drop again? Most likely.

Now this isn't necessarily a bad thing as in the long term I am confident the price will bounce back and possibly even break the previous all time high. So buying at these lower prices could pay off.

At the time of writing this we are 70% down from the all time high which means Bitcoin will need to gain 232% to climb back to $69,000. As a potential investor this number sounds quite nice doesn't it? 

It is also worth keeping in the back of your mind that even though this bear market may resemble the 2018 bear market in a lot of ways, we are in a completely different macro economic state. Both for Crypto and the Stock market.

We have record high users for Crypto and more and more Web 2 companies adopting Crypto both as payment methods and as infrastructure. This could signify that this current bear market will be shorter than the previous as more and more money flows in holding the market up.

Should I be buying Bitcoin right now?

The old saying goes ‘never invest more than you can afford to lose’ and in Crypto this is especially true. If you have some spare money floating around you would like to invest, Crypto can be a great option, as long as you can stomach the 20%+ swings either way. Chances are we are not at the bottom now however there are very few traders that can manage to catch the exact bottom. Once again the old saying ‘time in the market beats timing the market’ also applies very well to Crypto.

So when should I be buying Crypto and Bitcoin?

Have you heard of DOllar Cost Averaging or DCA? As an investor of any asset this is most likely the most powerful tool you can learn and use, whether you are an experienced trader or someone just dipping their toes in the water DCA’ing into assets is the best way to buy and average yourself a good entry price.

DCA is when you buy the given asset with only a % of your portfolio or what you are wanting to invest at a time. This allows for you to enter at different price points and if the asset crashes it means you still have capital on the sidelines you can deploy. This allows you to have a lower average entry price.

So let's say you have $1,000 you want to buy Bitcoin with. A great way to DCA in would be investing $100-$200 say once per week or each time you notice a decent dip in the assets price. This way you have 5-10 entry points rather than just one.

Hopefully this has given you somewhat of an idea of the current market conditions and will help you in deciding on your own game plan for the rest of your Crypto journey.

If you want Crypto news and information before anyone else be sure to sign up to our newsletter below.

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