The Bitcoin price fell below the $40,000 mark today. With this we see the low point of the development of the last few days. Fears of interest rate increases, regulations and fear of war are troubling the cryptocurrency. But is there any hope of a renewed trend reversal?
Bitcoin price falls below $40,000
The Bitcoin price has already shown a downward trend in the last few days. Before that, the price failed to break the upper resistance at $45,000. After failing to break this resistance several times, the price fell below the $42,000 level.
The downward trend continued. Bitcoin failed to re-approach resistance and actually fell below $40,000. Fortunately, support set in and the Bitcoin price rose slightly above this mark again.
Bitcoin price crash - what are the reasons?
The current drop in the Bitcoin price has several causes. On the one hand, the Bitcoin course could not surpass the mentioned mark of 45,000 dollars. After that, an attack over $50,000 would have been possible. Above all, however, it is external factors that drive Bitcoin down again and again.
Recently, the US Federal Reserve announced again that it would increase the current key interest rate as early as next month. These announcements have been hurting Bitcoin for weeks. There is also a fear of war in Ukraine. A third factor is the strict regulations that threaten Bitcoin in Canada. The Canadian government wants to take strict action against cryptocurrencies in the future.
What is hope?
It now feels to many investors that we should be entering a long-term bear market. However, some factors give hope that we will see a bull market for the Bitcoin price again in the next few months. Above all, the strong Bitcoin hash rate and the strong fundamental data of the last few weeks give hope.
In addition, on-chain data shows that large Bitcoin addresses and long hodlers have been accumulating Bitcoin more strongly in recent weeks. These could be signs that we are about to see a real trend reversal.
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