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Five reasons why BTC will reach rock-bottom before 2022 Ends

Many traders saw the recent rise of the cryptocurrency’s price above $20,000, a psychologically important price level, as a sign that the bottom had been reached. A closer look at the data shows that the short-term relief rally may not be enough to prove that the overall trend has changed. Everything you should know before investing in cryptocurrencies is here.

Bitcoin has lost almost 70% of its value since November 2021, when it reached its all-time high. Right now, it’s worth about $19,000. The real point of resistance for the cryptocurrency is at US$20,000, which is also the simple moving average price for BTC over the last 100 hours. Experts say that Bitcoin’s downward trend could continue if it can’t break through the US$20,000 resistance floor and its 100-hour simple moving average.

Most support for the price is around USD 22,000, but the cryptocurrency keeps breaking through this floor. The price could drop below USD 18,000 or even lower if there are more losses. Not too long ago, Bitcoin was seen as an excellent way to store a lot of money that wouldn’t be affected by regular economic and financial market changes.

This way of thinking is just starting to change. This is no longer true, though.  This is true both for Bitcoin and for the cryptocurrency market as a whole. People trading Bitcoin for a while are used to the unstable market and stormy conditions. But because Bitcoin doesn’t make money, investors often stop supporting it, which is why the price keeps decreasing.

This essay talks about the five main things that have caused the price of bitcoin to fall and why it will hit a new low before the end of 2022. The way people feel about the world and how bad it is

Dozens of Chinese mainland cities, including Shanghai, have put lockdowns in place because of covid. This is bad for businesses all over the world. Also, the war between Russia and Ukraine costs the world billions of dollars.

1. Governments are becoming stricter and stricter about cryptographic

Over forty countries, including China, have banned cryptocurrencies, limited financial access to the ecosystem, or blocked cryptocurrency exchanges. It’s one of the reasons why the price of bitcoin is going down and will hit its all-time low before the end of 2022.

2. The government of India does not like digital currencies.

It put a 30% tax on all cryptocurrency gains and banned tax breaks that could be based on cryptocurrency losses. On July 1, there will be a 1% standard tax deduction, and the goods and services tax is expected to be at least 18%. The government has clarified that cryptocurrency is not legal, even though it is taxed. This has hurt the Indian cryptocurrency market a lot.

 3. El Salvador and its failed experiment

The first country to make bitcoin a legal currency hasn’t been able to get its people to use it. The Bitcoin Bond didn’t matter to anyone else. It’s one of the reasons the price of bitcoin is going down, and it will hit its all-time low before the end of 2022.

4. People who buy cryptocurrency but take on too much debt

A company called CryptoQuant that studies cryptocurrencies found that the BTC leverage ratio hit an all-time high at the beginning of January. This showed that more people were taking chances on the cryptocurrency market. As in traditional markets, crypto investors often take out loans to pay for the futures contracts they want to buy. It’s one of the reasons the price of bitcoin is going down, and it will hit its all-time low before the end of 2022.

5. The fact that Bitcoin markets don’t have enough money

The biggest problem for the cryptocurrency markets when leveraged investors sell off a lot of their holdings is that there are generally fewer liquid assets on the market. Unlike the stock market, there aren’t usually many people waiting in line to buy just-loaded coins. Because of this and other things, cryptocurrency markets crash more often on the weekends. When many coins are sold, investors watching the market and ready to buy are less likely to do so.