Price Analysis

Will Crypto Markets & Bitcoin (BTC) Price Begin a Strong Recovery in 2022?

Written by: Sahana Vibhute

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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Jul 13, 2022

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Article Highlights
  • Crypto markets still appear to be heavily consolidated within a descending channel, constantly failing to regain bullish momentum

  • While the recovery phase has been extended for a pretty long time, a minor spark could lift the BTC price beyond $30,000 very soon

Bitcoin price after the recent rejection from $21,500 squashed the speculation of interim relief from the bears. The star crypto is now speculated to either maintain a parallel consolidation above the crucial support or else mark new lows ahead. However, the recovery phase which has differed for quite a long time is expected to kick-start when the BTC prices surpass and sustain above certain levels. 

The crypto markets have been undergoing huge crashes in the past that compelled Bitcoin to drop by nearly 80% from its highs. However the 2022 correction was a little diverse and expected to quickly ignite a strong recovery, but multiple events within & beyond the crypto space have restricted the price below $20,000. One of the probable reasons could be the weakening structure followed by the asset during the 2021 bull run. 

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Source: JustinBenett

The BTC price during the previous rallies smashed the upper resistance of the elevated channel. Further following a strong rejection, dropped towards the lower support marking the bear market. However, during the 2021 bull run, the asset failed to hit the upper resistance which was positioned somewhere around $180K to $200K. Therefore, despite hitting the bottom, the price is failing to rebound quickly as it did before. 

On the other hand, multiple events restricted the Bitcoin price to recover finely and enhanced forced selling. Some of the internal occurrences like the LUNA-UST crash, 3AC bankruptcy,  celsius network &   Digital crisis, etc and the external factors like shooting inflation, stock market drop, FED interest rates and importantly, global recession knocking at the doorstep.

Collectively, crypto markets should have ignited a strong rebound or else display their preparedness. But due to immense fear and uncertainty within the space have resulted in extreme and forced selling keeping the BTC price heavily consolidated. Therefore, relief may be expected only when Bitcoin surpasses and sustains above $22,500 levels that may further ignite a strong rally towards $30,000. 

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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