Bitcoin has managed to make a $35,000 price line local support after a sudden crash a couple of days ago. BTC’s price breached the major support of $40K and reached $33K leading to massive liquidation of 1.5 billion US dollars.
The market has shown a quick recovery since the latest low, as most major coins have managed to bounce by up to 10% within the past 24 hours, indicating the possible recovery of the market. Additionally, the green candles helped the entire crypto market to increase up to 10%. The total crypto market cap has gained nearly $160 billion after hitting the lowest since September 2021 of $1.47 Trillion. Currently, the total crypto market is hovering around $1.65 trillion, with BTC trading around the $36K price line.
Bitcoin Price Prediction for 2022
Making a Bitcoin price prediction for 2022 is difficult; there are some parameters that give clues about the upcoming change in Bitcoin price in 2022. Although BTC has started the new year with a decline of price followed by a massive plunge with touching the lowest price since August 2021, the market shows a slight recovery of the price. Currently, the market is down by nearly 49.9% after touching its All-time high of $69K. The on-chain market analysis and BTC historical movement show a close resemblance to the price movement. In 2020 after smashing the all-time high, BTC plunges up to 74% before taking a jump start towards the next all-time high. A report by Glassnodes shows that the current price correction is deeper than all previous corrections. The report further suggests that the market is currently taken over by the short-term bears, with major bulls are on their back foot and waiting for the market to be stabilized before making any move.
With Crypto Fear & Greed Index touching a record low of 10 indicates that the market free-fall has almost reached the bottom, and a next phase is about to take off. As the BTC is currently oversold, major crypto players are accumulating the dip. The continued buy has lifted up the hope of the crypto community, with a social sentiment showing that users are tapping this opportunity instead of staying away from the market. Recently, #buythedip was trending on Twitter and indicates a positive sentiment of crypto users.
Bitcoin Mining Difficult hits All-time high
Bitcoin mining difficulty, a technical parameter that decides the requirement of computational power to mine the next block, has touched the all-time high of 26.63 Tera Hashes. This difficulty requirement has increased by 32.6% within the past 90 days. The increase shows the addition of more hash power in Bitcoin mining. Though the spike in difficulty has decreased the earning of miners with more requirements of energy, it also shows an increase in the Bitcoin mining pool.
Bitcoin price movement in 2022
The currently technical parameters show a neutral interest in the Bitcoin and overall crypto market. However, with RSI oversold, the market is expected to bounce back from this point. Also, some crypto experts believe that the sale-off has not been over yet, and the price might smash $30K and touch the major support of $29,000 before making a considerable upwards movement. With much positive news scheduled to come up this year in terms of more big investors entering the crypto market and favorable crypto regulation news from the major economies of the world. Moreover, with growing interest in NFT and Metaverse, the crypto market will be going to move upwards with massive funds coming up in Crypto.
Disclaimer: Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
Gargi Sinha is working as Senior Journalist at Confea. She has completed her Masters in Journalism from Delhi University. She has interest in crypto and blockchain technology.