Friday the 13th – The Bitcoin Price Apocalypse: How the BTC will develop?

No matter what asset you check, everything is facing a tremendous downfall. The Bitcoin price is falling like a house of cards. Is this the beginning of the financial crisis?

Bitcoin price analysis- Bearish breakout – 64% price loss!

Bitcoin Price
Bitcoin weekly price-  trading view

The Bitcoin price broke bearishly from the neutral price pattern and has already fallen over 64 percent. Bitcoin has failed support at $5,000 and $ 4,200 and has even reached $ 3,800. Bitcoin should find support at $ 3,000 at the latest and correct it upwards; otherwise, Bitcoin could reach a new low.

Then the downside potential would not be clearly defined. If you rule out that the Bitcoin price goes to 0, Bitcoin should bounce upwards, even if only for a short time. In any event, the circumstances are incredibly bearish, and Bitcoin’s trend is only bullish in the most extensive cycle.

Gold price Analysis – bearish divergence!

Gold price vs Bitcoin Price
Gold weekly price-  trading view

In opposition to the rest of the capital market, crisis-proof gold is proving to be extremely stable in value. Still, gold has also slipped by around 9 percent after the bearish divergence in the RSI has dissolved. The gold price is currently in the support zone and will find support again between $ 1,311 – $ 1,378 at the latest.

After all, the capital market has long been in a very artificially sustained, never-ending upward trend that eventually had to end. This could initiate a general bear market. However, this cannot be determined at the current time, so it will be interesting to see to what extent the situation will worsen. The fact is, where one loses money, another wins. Times like this also offer great opportunities.

What will happen to Bitcoin Price in the next weeks/months?

If we are experiencing a liquidity crisis, this means that investors want to take the emergency exit. Almost every investor. At the same time.

This inevitably ensures that in the panic of the falling markets, severe price losses are sometimes accepted, only to get out of the market as quickly as possible. Even investors who act very rationally are now starting to make irrational decisions because there are far more sellers than buyers on the market. In other words, there is a lack of liquidity in the market. 

The years of excesses on the financial markets brought greed and profits, which increased over time. This led to margin trading and overinvestments – i.e., investments and speculation with actually nonexistent money. 

If there are now sharp drops, positions have to be closed, loans from margin trading repaid, and risk reduced. This requires a lot of cash – which is then drawn from all liquid markets. And because of the extreme demand, investors also lose their price sensitivity, causing prices to tumble.

Bitcoin was created for this scenario. It is the only minimal money that we know. And this property, in particular, will play an increasingly important role in the developments ahead. The central banks have already announced that they are ready to pump currency into the system without end, thereby destroying any purchasing power.

Everyone will start to feel the consequences of how fewer and fewer things can be bought from the same amount of currency. And that is precisely when Gold & Bitcoin can and will flourish, as the population needs alternatives.

Bitcoin Price
Bitcoin Price© Cryptoticker
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