This crypto crash was a harsh one for all cryptocurrencies. None was spared from the heavy sell-off, including stablecoins that are being put to the test. Bitcoin was expected to rebound from $30,000, but managed to breach this price lower and reached $25,400. What’s next for Bitcoin? Can Bitcoin recover soon? Where are the next targets for BTC? In this Bitcoin price prediction article, we try to assess the important levels that Bitcoin might reach.
Bitcoin Crashed to 25K – Why are Cryptos crashing?
The year 2022 started on a bearish note. This wasn’t helpful as most investors were sitting on the sidelines, waiting for positive news to enter the market. Despite many good fundamentals, prices continued to dip. Many previous factors contributed to this extended downtrend:
- Limited crypto regulations
- Correlation with an overbought and adjusting stock market
- Security breaches, hacks and rug-pulls
- Ukraine war
Many other mishaps happened in the crypto market, including bad ICOs, congested blockchains, gas fee problems and other. When the market tries to recover, another problem gets slammed in the face of investors. The above points are just the tip of the iceberg. They made the crypto market crash by more than 50% since the beginning of the year 2022. Bitcoin is currently at a critical price of around $28,000 after recovering from a slump toward $25,400.
Will Bitcoin recover soon?
We would’ve been at ease seeing Bitcoin reach $30,000 as this is a major psychological price area. Even the slump towards $28,000 was still okay as this represents a strong support from previous years. On the other hand, the break towards $25,400 is the worrying part. BTC price managed to breach lower, thus proving that the selling pressure can continue lower. If prices manage to remain higher than the $28,000 price (yellow zone in figure 2), we might be able to see signs of a near recovery.
However, if prices breach this level again, Bitcoin price might continue to crash reaching $22,000.
Crypto Market at a Glance
In the past 24 hour, the entire cryptocurrency market lost more than 15% on an aggregate level. XEC, GRT, and FTM were among the top losers, crashing by -44%, -43%, and -42% respectively. Other than stabelcoins (not UST), AXS and TRX managed to hold their positions, slightly gaining 4% and 2% respectively.
1- Bitcoin (BTC): – 10.8 %
2- Ethereum (ETH): – 19.6 %
3- Tether (USDT): 0 %
4- USD Coin (USDC): 0 %
5- Binance Coin (BNB): – 14.75 %
6- Ripple (XRP): – 25.3 %
7- Binance USD (BUSD): 0%
8- Cardano (ADA): – 27 %
9- Solana (SOL): – 29.4 %
10- Dogecoin (DOGE): – 26.1 %