Bitcoin prices dropped to $39,200 and renewed fears of a long bear market for the top cryptocurrency. The overall crypto market also saw a slide on Monday following concerns over sustained high inflation. There are also concerns over several interest rates from the US Fed Reserve and concerns over a global shortage of food, leading to all-around fears of a weak global financial market.
Data released by TradingView and Cointelegraph reveal that the bear traders managed to breach the defensive line of the bulls at the $42,000 mark, in early morning trading hours. Bitcoin prices dropped to $39,200 with analysts fearing that the short-term prices would slide further.
Experts Warned Of More Unstable Times Ahead Before Bitcoin Finally Stabilizes
Michael van de Poppe had warned about this possibility even as he highlighted the strong movement in Bitcoin. He said that the $43-44,000 green zones would have to be supportive if there is to be any significant bullish movement.
Decent Finance adviser (DeFi) McKenna said the price action of Bitcoin was the weirdest movement that he has encountered. He said that he did not see it sliding below $30,000 in the future and said that this choppy pricing would continue, though this was hell enough.
360Trader, another crypto analyst on Twitter, expressed similar sentiments when he said that the consolidation of Bitcoin continues and leverage remains in control. He said that floats are drying too, but they will not be there for long and investors need to just be patient and keep the pressure for a better movement.
Other experts are of the view that this could not be termed a genuine bull market as long as we are convincingly back over the first year of MA (moving average). The MA has played a pivotal role in the bear versus bulls market throughout the history of Bitcoin.
The present market capitalization of the cryptocurrency market is now at $1.874T with Bitcoin dominating with 41.4% of the total.