The end of Bitcoin's rally and the beginning of a sharp drop

In the world of digital currencies, Bitcoin is the leader, and its price fluctuations often affect the entire market. Recently, Bitcoin has experienced a significant rebound, and many investors are looking forward to it. However, the unpredictable market makes people wonder: Has this rebound reached its end? Is a new round of plunge coming soon? This article will explore the current status of the Bitcoin market and possible future development trends.

First, looking back at Bitcoin's historical performance, price fluctuations have always been the norm for this cryptocurrency. From its all-time high in late 2017 to the subsequent plunge, and then to its rise again in 2020 and 2021, Bitcoin's price trend has been like a roller coaster. In early 2023, after a period of slump, Bitcoin prices ushered in a new rebound, reaching a high of $60,000. However, as market sentiment changes, many investors have begun to doubt the sustainability of this rebound.

When analyzing whether the rebound of Bitcoin is over, we must first focus on the fundamentals of the market. The supply of Bitcoin is limited, only 21 million pieces, which makes it anti-inflationary to some extent. However, as more and more institutional and individual investors enter the market, price fluctuations have become more intense. According to data, the number of Bitcoin holders worldwide continued to grow in the first half of 2023, especially in some emerging market countries, where the acceptance of digital currencies is increasing. These factors have supported the price rebound of Bitcoin to a certain extent.

However, market sentiment changes are often difficult to predict. Behind the rebound of Bitcoin, there are actually huge risks. Recently, there have been some unfavorable signals in the market, such as the tightening of supervision of cryptocurrency exchanges by the U.S. Securities and Exchange Commission (SEC) and the uncertainty of various countries' policies on digital currencies. These factors will undoubtedly have an impact on investor confidence, and thus affect the price trend of Bitcoin. Many times, changes in market sentiment are not based on rational analysis, but driven by fear and greed, which makes the price of Bitcoin fluctuate violently in a short period of time.

Furthermore, technical analysis is also an important tool for judging the trend of Bitcoin prices. Many analysts analyze market trends through charts and indicators. Technical analysis shows that Bitcoin has tested key support and resistance levels many times during its rebound. If the price of Bitcoin fails to break through certain key levels in future trading, it may lead to a sharp shift in market sentiment, triggering a new plunge. For example, if the price of Bitcoin falls below the support level of $50,000, it may trigger a large number of stop-loss selling, further exacerbating downward pressure.

In addition, changes in the global economic environment have also had a profound impact on the price of Bitcoin. At present, the global economic recovery is uneven, inflationary pressure is increasing, and the monetary policies of central banks are constantly adjusting. In particular, the Fed's interest rate hike policy may lead to capital outflows from risky assets, including cryptocurrencies such as Bitcoin. In this context, investors may choose a more conservative investment strategy, which will undoubtedly put pressure on the demand for Bitcoin.

From a psychological perspective, investor behavior is often affected by market sentiment. After a round of rebound, many investors may choose to lock in profits, which may increase the selling pressure in the market in the short term. Especially when market sentiment is fragile, once negative news comes out, investor panic may trigger panic selling, further driving down the price of Bitcoin.

When discussing the future trend of Bitcoin, we also need to pay attention to the impact of technological innovation. The continuous development and application of blockchain technology may bring new vitality to Bitcoin. With the rise of emerging fields such as decentralized finance (DeFi) and non-fungible tokens (NFT), Bitcoin, as a representative of digital assets, may also be further recognized and enhanced in value. However, all of this is based on market stability, and any uncertainty may lead to drastic market fluctuations.

In summary, whether the rebound of Bitcoin has ended or whether a new round of plunge will come is a question that market participants need to think about seriously. The fundamentals, technical aspects and changes in the external environment of the market are constantly affecting the price trend of Bitcoin. Although Bitcoin may face downward pressure in the short term, in the long run, its value as a digital currency is still worth paying attention to.

In this uncertain market, investors need to remain calm and look at the short-term fluctuations and long-term value of Bitcoin rationally. No matter how the price of Bitcoin changes in the future, it is important to understand the technology and concepts behind it, seize the opportunities brought by digital currency, and do a good job of risk management. Only in this way can we be invincible in this ever-changing market.

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.

According to major foreign data, after Bitcoin broke through 19,000 US dollars on December 17, it fell by more than 50% to 9,000 US dollars, and then rebounded to 15,000 US dollars with a reduced volume.
But judging from the trading volume, off-market funds are not too eager to buy at the bottom, so the trading volume is sluggish. This also lays the hidden danger for today's plunge.
As of press time, according to the data from the Bitstamp platform, the decline of Bitcoin has widened to 13%, with the lowest price at $13,700. From a technical point of view, today's big negative line means that the rebound of Bitcoin has ended, and the next round of plunge has begun.
So when will Bitcoin fall, or when will it bottom out? From the K-line, Bitcoin 13,000 and 7,500 are two important thresholds.
After falling below 1.3W on the 23rd of this month, it means that the next falling platform is around 7,500 US dollars.
But it may stay at $11,000 for a while. This is just a technical analysis. Of course, Bitcoin is greatly affected by news. If there is a big positive news in the near future, then it means that Bitcoin has started a new round of surge. Who can say for sure?