What will happen to Bitcoin? Is it the right time to invest and buy BTC?

The new week brought good news for the price of Bitcoin. After hovering above $20,000 for most of last month, the digital asset finally found a much-needed break at the end of the weekend. This new uptrend is a sign of good things for the market to come. However, it remains an open question whether the bottom has been reached and whether the downward trend is over.

Bitcoin returns to $22,000.

With the price above $22,000, Bitcoin investors have been feeling a lot of joy at the moment. This new price point is in line with many bullish and bearish trends. Read also: Ethereum: Spectacular +200% Growth Expected Due to Lower Gas Fees for ENS Domain Registrations!. But that’s mostly thanks to a semblance of normalcy returning to the market after the big platforms declared bankruptcy. This has resulted in investors accepting the fate of these ailing platforms and looking to the future.

Related Reading | The difficulty of Bitcoin mining has decreased for the second time in a row

The return to some normalcy has been accompanied by an upward trend among investors. A clear example is the number of investors who keep more than 1 billion dollars in their accounts. That number hit a new high in the early hours of Monday, with 1,557,225 addresses holding more than $1 billion, according to Glassnode.

This hoarding tendency is undoubtedly one of the driving forces behind the price recovery. Others include the Ethereum merger, which caused a massive spike in the market, affecting the prices of other companies in the process. crypto– currencies.

Has the bottom of the barrel been reached?

This rally has fueled talk that Bitcoin has finally hit an all-time low, which at current rates looks like it hit $17,600 last month. If so, the future of the digital asset could be marked by another recovery. Read also: This is why the Shiba Inu cryptocurrency may fall further, while Bitgert has the potential to increase 100x!. However, it is not that simple, especially considering that the cryptocurrency has previously exited its “bull” market.

Related Reading | Here’s who’s fueling Bitcoin’s recovery to $22,000, according to Open Interest

Cryptocurrency bear markets are notorious for their associated price drops. An example is the bear market of 2018, when the price of Bitcoin fell approximately 84% from its all-time high. This was the case during the previous bear market in 2014, and this has become an expected trend.

Under these conditions, given that the price of Bitcoin still manages to maintain a value of more than 25% from its all-time high, the possibility that the absolute bottom is yet to be reached still hangs over the market. Since the price of Bitcoin follows the historical trend, the digital asset must fall to at least $13,000 to meet these conditions. Otherwise, it is possible that this recovery will be only temporary and that further declines are ahead.

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Please exercise caution and consult your financial advisor before making any investment decision. Mirror-Mag is not responsible for unsuccessful investments. Before using any third-party service, you should do your own research.

Thomas Estembre
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