Bitcoin Price Prediction: Will BTC Price Crash to $5000 Before the end of the year 2022?
The Bitcoin price has seen a rise in the last few days, accompanied by a dramatic reduction. Even so, the risk of a historic low in 2022 is incredibly high shortly. Nevertheless, there is proof that Bitcoin could collapse to $5000 OR $10,000. What are the red flags of such a crash? This article is all about the Bitcoin price prediction and whether BTC will crash to $5000 or not before the end of this year. Let’s take a look at it in more detail.
How has the price of Bitcoin changed in recent months?
In 2022, the Bitcoin price suffered significant losses. Bitcoin was still at an all-time high of over US$ 68,000 in November 2021. Bitcoin has since dropped nearly 75% of its value in recent months, with a long-term crash anticipated in 2022.
The loss has been around 65 percent since the beginning of 2022. The majority of the losses took place in the first half of 2022 when the price of Bitcoin dropped below $18,000 by mid-June. This mid-June wreck was long thought to be the lowest moment for the Bitcoin price in 2022. After the FTX crash in early November was Bitcoin able to fall pretty low and declined below the $20,000 mark.
Bitcoin Price Prediction: What Caused the 2022 Bitcoin Crash?
Bitcoin crashed in 2022 because of a variety of factors, including:
- Natural correction by the bear market: Bitcoin price moves in typical cycles that are defined by the halving. In 2021 we witnessed the peak of the bull market and in 2022 the start of the bear market. In the latter stage, heavy losses are now considered normal.
- General economic situation: The year 2022 witnessed an inflationary crisis started by the policy of easy money. With the required interest rate proliferation by the US Federal Reserve, riskier investments such as cryptocurrencies are becoming less beneficial.
- Loss of trust: The FTX bankruptcy in particular once again decreased trust in the crypto market, leading to a more substantial Bitcoin crash.
Why Could Bitcoin See a Crash to $5000?
For weeks and months, the Bitcoin wreck to $5000 US dollars has been debated as a bearish circumstance. Several factors could allow this to happen right now:
- Due to the FTX crash, trust in crypto exchanges and other crypto projects is low.
- Binance has come under fire after failing to audit its financial situation.
- The key interest rates were raised again.
- The Bitcoin price was only able to break the resistance at $17,000 for a short time but quickly fell back. This could trigger a bitcoin crash.
As a result, the risk of a drop to $10,000 or $5,000 is particularly high in the coming weeks. However, in the medium term, the trend reversal should occur by 2023.
What is the Bitcoin forecast for the end of 2022?
Bitcoin’s price could very well have soared to $20,000. If the recent interest rate hike had not stalled the recent rise, an increase to $20,000 by the end of the year would have been highly probable. However, following the bump in the road, the Bitcoin price could drop as low as $10,000 or even $5000.
Although there are only two weeks until the end of the year, making a Bitcoin forecast for the end of the year is difficult. If Bitcoin price stays below $17,000 in the coming days, a balanced Bitcoin prediction for the end of the year is most highly probable.
The price could certainly change in the next two weeks. A meltdown of less than $15,000 is still possible. Even so, the Bitcoin price has since balanced just after the FED’s drop. As a result, we do not predict a huge decrease this year.
However, another breakout above the $17,000 level is possible, putting the price back toward $20,000. We assume this is also highly improbable in light of the recently missed rebound.
Is an investment in Bitcoin worth it?
Bitcoin is still a wise investment at the moment. Despite our balanced prediction and the probability that Bitcoin will drop even further, we must acknowledge that Bitcoin is actually incredibly undervalued in the long term.
Furthermore, we could see a stronger increase in 2023 than we did in 2019, the second year of the previous bear market. As a result, a consistent investment in BTC could be worthwhile, especially at these low prices.
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