The bottom turning point in the Bitcoin decline: When will there be a rebound?

As the price of Bitcoin continues to fall, the market's anxiety is intensifying. As the world's most well-known cryptocurrency, Bitcoin's volatility has always been the focus of investors. Recently, Bitcoin prices have continued to fall, and many people have begun to wonder: When will this wave of decline bottom out? This article will delve into Bitcoin's market dynamics, reasons for the decline, and possible bottom turning points to help investors better understand the current situation.

The price fluctuation of Bitcoin is closely related to market sentiment. In recent years, as the global economic situation has changed, many investors have turned their attention to the cryptocurrency market. Especially in the context of increasing economic uncertainty, Bitcoin is regarded as a kind of digital gold, attracting a large amount of capital inflow. However, as the market matures, drastic price fluctuations have also followed. The price of Bitcoin once exceeded $60,000 in 2021, but it experienced a sharp correction in 2022, falling below $30,000. Such fluctuations have made many investors confused and uneasy.

The decline of Bitcoin is not accidental, but is affected by multiple factors. First, the change in the macroeconomic environment is a factor that cannot be ignored. With the intensification of global inflation, central banks of various countries have adopted tight monetary policies, resulting in a decline in market liquidity. Investors have become more cautious about risky assets. Secondly, changes in regulatory policies are also an important influencing factor. Governments of various countries have increasingly stringent regulatory policies on cryptocurrencies, and market confidence has been hit. Especially in countries such as China, the government's suppression of cryptocurrencies has caused market sentiment to be depressed.

In this context, many investors began to explore the bottom turning point of Bitcoin. How to judge when the market has bottomed out? This is a complex and challenging question. First of all, we can refer to historical data. In the history of Bitcoin, the price has experienced many large fluctuations, and each big drop was followed by a rebound. For example, in 2018, the price of Bitcoin fell from nearly $20,000 to $3,000, experienced a year-long downturn, and finally ushered in a rebound in 2020. Therefore, the lessons of history tell us that the market will always bottom out and rebound at some point, but no one can accurately predict when it will rebound.

Technical analysis is also an important tool for determining the bottom of Bitcoin. Many traders use charts and indicators to determine the trend of the market. For example, RSI (Relative Strength Index) is often used to determine the overbought or oversold state of the market. When the RSI value is below 30, it usually means that the market is oversold and may be about to rebound. The current RSI value of Bitcoin is close to this threshold. Does it mean that the market is about to stabilize? This is undoubtedly a signal worth paying attention to.

In addition, market sentiment indicators can also help us judge the arrival of the bottom. As we all know, market sentiment is often reversed. When most investors sell in panic, it often means that the market is close to the bottom. On the contrary, when market sentiment is too optimistic, it may be the beginning of an adjustment. At present, the discussion heat on social media and the panic index of investors are also constantly changing. Monitoring these indicators will help to judge the bottom of the market.

However, despite the various tools and indicators that help us analyze the market, there is always uncertainty in predicting the bottom of Bitcoin. The dynamic changes in the market and the influence of external factors make it complicated. In this case, a cautious investment strategy is particularly important. For ordinary investors, it is best not to blindly follow the trend. When the market fluctuates greatly, it is wise to stay calm and analyze rationally.

It is worth mentioning that the current market decline also provides opportunities for investors. As prices decline, the valuations of many high-quality assets have become more attractive. For long-term investors, now may be a good time to make a layout. After all, every market downturn in history means future opportunities.

Combined with the above analysis, although Bitcoin faces multiple challenges, the bottom of the market will eventually come. When facing market fluctuations, investors must remain vigilant and be good at seizing opportunities. The future trend is still full of variables, so continuing to pay attention to market dynamics and maintaining a learning attitude will help you go further on this investment road.

During this period, we should not only pay attention to the price changes of Bitcoin, but also pay attention to the technological progress and application scenarios behind it. As an emerging asset class, Bitcoin's future development potential cannot be underestimated. With the continuous maturity and application of blockchain technology, the value of Bitcoin is expected to be further improved in the future.

In general, the continuous decline of Bitcoin has made many investors feel uneasy, but this is also part of the normal market fluctuations. By analyzing market dynamics, technical indicators and sentiment changes, we can better judge the arrival of the bottom. Although the future is still full of uncertainty, staying rational and seizing opportunities are the best strategies to deal with market fluctuations. I hope that in the near future, we can see Bitcoin regain its vitality and usher in new opportunities and challenges.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

This morning, news from Bitcoin.com said that the Chicago Board Options Exchange is applying for six index funds (ETFs) for Bitcoin. After Bitcoin entered the mainstream financial field, it quickly deepened its integration, which provided another strong shield for the development of Bitcoin and the entire currency circle. In addition, as early as the middle of the year, GMO Financial Group announced that it would invest $320 million in Bitcoin mining in 2018 and planned to independently develop chips. The competition between the two major players in mining is far more reassuring to the world than Bitmain's dominance.
What to watch for today
The recent trend of the currency market has entered a new stage. Bitcoin has become the leader in the current rise and fall. If Bitcoin stabilizes, other currencies can also stabilize; conversely, if Bitcoin starts to be smashed, other currencies will also fall. I don’t know if any currency friends have noticed that a few days before all currencies fell sharply the day before yesterday, Bitcoin had actually fallen quietly, but the magnitude was not large and did not attract much attention. In short, at this stage, just keep a close eye on the trend of Bitcoin.
What will be the general direction of Bitcoin? See the figure below:
Another downward channel has opened. In the Bitfinex market on the 22nd, the $13,000 barrier was broken without resistance, and even dropped to $10,000, and then quickly rebounded after encountering strong support. Today, Bitcoin fell again from around $15,000, and the $10,000-12,000 range may be hit for the second time.
In terms of exchange prices and trading volume, Bitfinex is in the leading position. Currently, the Korean Bithumb exchange
Trading volume has dropped sharply and prices are distorted. Bitcoin price reference Bitfinex.
Judging from the increase in the market value of USDT, large amounts of US dollars are still continuing to enter the market.
TODAY'S MARKET
Today, Bitcoin is testing the $12,000 barrier. If it holds, the market will rebound like on the 23rd, or even recover lost ground. A large amount of US dollars is waiting to enter the market, so it will be a good time to build a grid position in the short term. Even if it breaks through the $12,000 barrier, a crash will not occur. As of press time, the price of Bitcoin on Bitfinex is $13,515.