Bitcoin is witnessing a decline during trading last week, as it lost about 14% since August 15, after it recorded its highest level in two months above $ 25 thousand
Bitcoin trades above $20k on bearish fears
Bitcoin is witnessing a decline during last week's trading, as it lost about 14% since August 15, after it recorded its highest level in two months above 25 thousand dollars, supported by the recovery of stock markets that were affected by expectations of reducing interest rate hikes during the next meeting and inflation data that came less than expected.
Since the beginning of the week, the initial cryptocurrency has traded in a narrow range above the $20,000 level with a bearish tendency, and expectations indicate that Bitcoin may experience further declines, and that the worst is yet to come.
Bitcoin stabilizes amid downside warnings
Renowned economist Peter Schiff warns that the cryptocurrency benchmark is about to spill more blood, and could crash 85 % from current highs. expectations.
In June of this year, expect Bitcoin to head to lows of $20,000 while Ethereum the second largest cryptocurrency will drop to $1,200, a few days later Schiff’s prediction of 100% came true as the top two cryptocurrencies fell to levels that you expected.
On August 14, he again noticed on Twitter that bitcoin was forming two bearish patterns: a double top and an inverse head and shoulders top, and Schiff claimed that the pattern heralded an epic drop to $10,000, less than a week after he boasted that bitcoin had lost nearly 14 % from Worth it since he posted his previous tweet.
Optimism despite the warnings
The overall market capitalization of popular cryptocurrencies has faded in recent months due to several bankruptcies and liquidity issues that have wiped out $2 trillion in total cryptocurrency value since it peaked last November.
This was not the first drop for the largest cryptocurrency by market capitalization, it had previously collapsed in 2018, 2020 and summer 2021 before bouncing back to test new highs each time.
While Bitcoin's fall this year has been frightening, dropping by 74 % from a peak of $68,000 last November to $17,601 on June 19 this year, indications are that the digital asset has found a bottom, although the leading cryptocurrency has been constrained. With a range bound over the past two months as it traded between $20,000 and $25,000, it appears that serious crypto investors are taking a long-term approach to the digital currency and seem unfazed by the price swings of this year.
Many analysts are already welcoming the current turmoil in the sector Crypto Bitcoin has fallen, saying we are witnessing a much-needed “crash” of dumping more speculative and less trustworthy crypto companies and assets.
Also, many investors and analysts have predicted that the bitcoin price will fall below $10,000 this year, and it appears to have settled above $20,000. From 15,000 companies, the digital currency is not likely to disappear soon.
A professional technical and economic analyst in global financial markets since 2004. He holds a Master’s in Business Administration from the American University in Cairo. He works as an economic writer and technical analyst for many international financial companies. He writes daily economic and technical analyzes for many Arabic and English websites specialized in the field of stock exchanges and financial markets.
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