Bitcoin has been moving between $19K and $20K for a week now. It seems that the market is stabilizing, but the worst may still be ahead. The crypto winter is a phenomenon caused by a multitude of different factors including the global recession, international conflicts that now span several continents, and a variety of other socioeconomic issues that shook the faith of investors in most assets. High inflation across all nations does not help either.
Many doomsayers are predicting $12K
The magical number $12,000 became a repeated mantra among technical analysis “experts” spouting their predictions on various social media platforms. With many influencers picking up the same talking points, the collective panic may affect the market. The Ukraine-Russia war is still going strong meaning that the next wave of sanctions may further cripple the global trade and international relationships between many countries.
The global economy does not show strong signs of recovery. While some news like the announcement of Germany that it filled its natural gas reservoirs up to 90% capacity makes it seem that the European Union can withstand the upcoming winter without relying on the Russians, it is still not enough to convince skeptics that the European economy will start recovering any time soon.
However, the 12K support line seems pessimistic. Many analysts are drawing imaginary lines on price charts and show “evidence” that doom is coming, but their predictions have never worked out well. The same people were talking about $100K by the end of the year just a couple of months ago. It seems that this prognosis is impossible now. What should make us believe these forecasts are any better?
DYOR becomes even more important than before
Doing your research is a good motto to have during this period of uncertainty. Panicking without any reason is not a good strategy for any investor. We do not know what the future holds, but we can be sure that the contraction of the crypto market will continue. However, the price of Bitcoin is unlikely to hit the dreaded $12K!