Since reaching an all-time high of approximately USD 69,000 in November 2021, the price of bitcoin has been declining. Bitcoin is currently trading at over $24,000 as of March 8, 2023. According to other Bitcoin traders, the price may fall much further, to USD 27,500.
Here are three factors that some Bitcoin traders believe will cause the currency’s price to collapse quickly to USD 27,500:
- Oversold according to the Relative Strength Index (RSI)
An analytical tool that gauges market momentum is the Relative Strength Index (RSI). A market is overbought and in need of a correction when the RSI is oversold. The current value of the RSI for Bitcoin is 25, which is regarded as oversold. This signals that Bitcoin is overdue for a recovery, while other traders think the recovery will be fleeting and the price may drop further.
- The Fear and Greed Index for Bitcoin is at an all-time low
An instrument that gauges the mood of Bitcoin traders is the Bitcoin Fear and Greed Index. The indicator is based on a variety of variables, including trade volume, Google search trends, and sentiment on social media. The current value of 8 on the Bitcoin Fear and Greed Index is the lowest ever. This implies that Bitcoin dealers are quite anxious and that the price may drop further.
- The macroeconomic climate is difficult
The prolonged conflict in Ukraine, growing inflation, and high interest rates are just a few of the difficulties the world economy is currently dealing with. The price of Bitcoin may be affected by these difficulties as investors look for safer investments.
It’s crucial to note that these are only three of the factors cited by some Bitcoin traders as evidence for their belief that the price would drop sharply to USD 27,500. Other elements may potentially have an impact on Bitcoin’s price. It is hard to predict with certainty what will happen to Bitcoin’s price in the future.
Conclusion
For a number of months, the price of Bitcoin has been declining. According to other Bitcoin traders, the price may fall much further, to USD 27,500. These traders hold this view for three primary reasons: the macroeconomic situation is difficult, the Relative Strength Index (RSI) is oversold, and the Bitcoin Fear and Greed Index is at a historic low. It’s crucial to remember that there are additional factors that could affect the price of Bitcoin; these are just three examples. It is hard to predict with certainty what will happen to Bitcoin’s price in the future.