According to experts, Bitcoin, the world’s biggest cryptocurrency by market cap and the most valuable digital token, is overwhelmingly underperforming.
Moreover, the technical indicators show that Bitcoin’s price will be further down, as claimed by analysts.
Even though BTC is currently priced at $16,711 and just needs one major on-chain indication for the start of a classic bull market.
But this push is getting delayed and delayed, said David Puell, the famous cryptocurrency analyst.
There are multiple reasons such as the fall of FTX, and the rumors about Binance, for causing such disruptions in the global cryptocurrency market.
The Current Activity of Bitcoin Network is Underperforming
Even though many market experts are voicing that the world’s most expensive cryptocurrency will soon touch the $12k mark. But few experts believe that everything does not look bearish for BTC.
On Friday, December 16th, the crypto analysts David Puell, on Twitter, said that on-chain indicators for Bitcoin’s price recovery are already present. But somehow, the cryptocurrency is lacking in clicking it.
Moreover, those investors who have helped Bitcoin for a long time are still resisting the mounting pressure of selling because they believe that currency’s price will bounce back.
Compared to the last time high, now the price of the digital token is 70% high. If BTC keeps missing such bullish indicators, it will be hard for the token to maintain the current price level of $16700.
Moreover, short-term investors have suffered a million losses from the recent plunge in the world’s most valuable cryptocurrency price.
According to David Puell Three Major Factors Are Needed For Bitcoin Bulls
Long-term holding behavior, Positive response from short-term losses, and increased Bitcoin network activity. Favorable macroeconomic conditions are needed for Bitcoin to be bullish.
Moreover, the global crypto market has become more sensitive to the collapse of FTX; this has also helped bears to bring the price down of Bitcoin.
The data by Cointelegraph shows that Bitcoin, as of this writing, is trading at $16,700. Cryptocurrencies across the globe, including Bitcoin, are having a cycle like no other.
Bitcoin is typically following a similar bearish pattern to the previous one. Moreover, the recent rumors regarding the Binance Token (BNB) also brought BTC down.
As the New Year’s festivities are around the corner, another classic price downtrend is looming around the world’s most prestigious cryptocurrency.
Bears are positioned to pin BTC’s price below the $16000 mark. If this happens, short-term investors will suffer more. In addition, selling pressure on long-term investors will rise further.
Market experts are still determining the future of cryptocurrency prices, and they believe that cryptocurrency prices will continue to see volatility till the mid of the year 2023.
As of now, the best choice for investors is to invest in the upcoming cryptocurrency launches rather than investing in already established cryptocurrencies.
David Puell, on the other hand, argued that indicators of bulls are present for Bitcoin.
But is the overall market sensitivity to the fall of FTX and now the false rumors regarding Binance why Bitcoin failed to capitalize on those bullish indicators?
As cryptocurrency prices drop, investors need to keep a keen eye on daily trends and price fluctuations.
Another hit in prices is also expected as the announcement of new monetary policy by the U.S. feds is due and will be announced shortly.
So, if the price of Bitcoin plunges further, then the chances are obvious that it will go down to the $12k mark.
In this scenario, both short-term and long-term investors will have no other option but to sell as selling pressure rises.
It is also important to know that crypto adoption has slowed down on big cryptocurrency exchanges.
But on smaller exchanges newly launched or upcoming crypto tokens are being listed rapidly. It may be time to invest in the newly launched tokens rather than go after the big names.