During the first half of this week, Bitcoin's attempts to begin correcting were pitiful. Does anything come to mind? The euro and the pound also exhibit very feeble corrections and have been unable to compete with the US dollar for an extended period. However, bitcoin is the market leader for declines in 2022. Its value has declined by around two-thirds, and each coin costs $ 18,000. Recall that six months ago, several "crypto experts" predicted that bitcoin's price would reach $ 100,000 in 2021 or 2022. Our respective worlds are vastly distinct. Regardless of how mundane it may sound, bitcoin's decline causes a new decline. It appears to be the "domino effect." If this is not achievable with traditional currencies, it is feasible with bitcoin. How is this carried out? Some miners mine coins but do not immediately sell them, instead waiting for the most favorable price. The fact that they do not place all mined coins on the market at once is advantageous for the "bitcoin" rate since the supply does not expand, increasing the rate. However, what is occurring now? Bitcoin has already lost 60-70 percent of its value, rendering its mining unprofitable. In addition, miners incur operational costs (for equipment and electricity) that they must cover, but at what cost if they do not sell the generated coins?
Consequently, market players and miners sell more coins as the price declines. Miners have nothing else to do because they cannot work without funds. Therefore, they release additional bitcoins onto the market. The cost continues to decline. This is what we are observing right now. BTC prices have already reached the Fibonacci level of 127.2 percent, and if it is surpassed, they will continue to decline with a goal of $ 12,426.
In the meantime, the underlying environment remains intact and indicates a further decrease in the bitcoin market as a whole. The Fed will continue to boost interest rates until at least the end of the year. This indicates that market conditions will become increasingly unappealing and that capital will continue to flow from risky to safe markets. We anticipate that similar to the US stock market, bitcoin's price will fluctuate wildly until the end of the year.
On a 24-hour timescale, "bitcoin" prices were locked below the $ 24,350 threshold. Consequently, the nearest target is now $ 12,426. Bitcoin can now theoretically fall to any value, including zero. This is improbable, but we predict that the rate of 5,000 to 10,000 dollars per coin will become a reality in 2022. The breaking of the $ 18,500 threshold will signify a new buying opportunity.
