HomeBitcoinBitcoin Continues to Struggle with Resistance at $17,000.

Bitcoin Continues to Struggle with Resistance at $17,000.

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The price of Bitcoin has seen a significant drop this year compared to its all-time high of $69,000 last year, leading to the bear market that has lasted for several months. However, like most assets, Bitcoin goes through cycles and many analysts believe that it could soon climb again. Despite this, Bitcoin is more affected by traditional markets and events such as the conflict in Ukraine and inflation, unlike in previous years.

In the first few months of 2022, Bitcoin saw a drop but managed to maintain an average above $35,000 until May. Of course, when an asset drops from over $60,000 to $35,000 in a matter of weeks and that asset is Bitcoin, it can definitely be called a bear market.

The first notable drop occurred in May when Bitcoin suffered a significant dump of $40,000, heading towards resistance at around $28,000. This marked the fall of the Terra Luna ecosystem by Do Kwon, one of the two main events of 2022 for the cryptocurrency industry. This caused investors to doubt and lose confidence even more, as the sudden disappearance of a major cryptocurrency like Terra Luna made it clear that the volatility of cryptocurrencies is a reality.

The second major drop for Bitcoin happened in June, with no significant events besides the increasingly oppressive bear market following the fall of Terra Luna. Bitcoin reached $19,000 before stabilizing around $20,000.

The second half of the year was just as catastrophic, with the collapse of FTX, the second largest exchange in the world, at the beginning of the month causing many players in the industry to fall and severely impacting the already struggling market. This caused Bitcoin to briefly reach its lowest point since 2020 at $15,800.

After a few days of uncertainty, Bitcoin saw a slight recovery and has been hovering around the $17,000 mark, struggling with resistance. Many believe that the next move for Bitcoin will depend on whether it can break through this resistance and reach the $20,000 mark again.

Regardless of the current state of the market, it is important for investors to remember to only invest what they can afford to lose and to do thorough research before making any investment decisions.

 

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