Investing in Cryptocurrencies is definitely not for the faint of heart and requires a strong stomach and patience. The world's first decentralized cryptocurrency traded at an all-time high of 68.990 dollars in November 2021. From these levels, BTC-USD has already fallen -75%.
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Let's review the historical Bitcoin price trend.
In a first major rally (in recent years) for Bitcoin, it soared to highs of nearly $19.000 in December 2017. Almost 12 months later, Bitcoin was trading -82% below its highs. Most investors had almost believed that Bitcoin was going to die.
Again, in April 2021, Bitcoin soared to $63.000. By December 2022, Bitcoin fell below the $17.000 levels. Clearly, this is not the first time that Bitcoin has witnessed a correction of more than -75%.
However, speculators will be left out of the game and investors have a good chance to accumulate long-term at fairly cheap points.
The biggest reason for the correction is the increase in interest rates from the Federal Reserve, It is worth noting that some high-growth stocks have fallen -50% to -80% in recent months. Thus, Bitcoin, as a high-risk value was sold quite a bit.
The next obvious question is: Is the worst over?
I believe Bitcoin is already oversold. However, given the uncertainties in the global economy, I would still look at incremental accumulation.
One reason to think that selling is overdone is the possibility of a US or global recession. If the Federal Reserve is convinced that the probability of a recession is high, rate hikes will be less aggressive. Conversely, a recession would entail further interest rate cuts.
Bitcoin is still in a downward trend that if the data we have at the moment does not change there is no positive picture in it based on the news on the global markets.
The positives about Bitcoin.
The positive picture now on Bitcoin is these two charts that show us that bitcoin is nearing the bottom and is a good point for DCA and also that in every bear market the Bitcoin market is correcting about between -80% and right now we are at -75%.
⚠️Disclaimer ~ 🚨Disclaimer🚨 What we mention on BitsounisProject channel/site is for entertainment purpose. I am not a financial advisor and what I show is my own opinion, always do your own research.