Bitcoin Fundamental Analysis
Bitcoin fell into a downward spiral at the end of 2021 and has been heading downwards ever since. That sell-off has created a lot of fear and uncertainty as stocks fall. However, Bitcoin is very cyclical; likewise, it can go up by 1,000% or go down by 80%. Now that Bitcoin is down about 60% from the top, a lot of people are now trying to find where the bottom is. The fear and greed index is at its lowest point, and now many retail investors have completely collapsed after buying digital currency, and they are beginning to fear this market.
Fear and Greed Index Data
It looks like a bottom is slowly forming but the market is slow to start reversing. As the saying goes, “before dawn is always the darkest”, the market reversal will start soon, but it does not mean that the previous high can be broken. Now the market is expected to need more than a month of consolidation before entering the next stage.
Basic Analysis of Ethereum
It’s important to remember that Bitcoin rules the entire crypto market, so if Bitcoin goes down, so will other cryptocurrencies. Ethereum, on the other hand, is the big brother of altcoins. Ethereum just recently broke below last year’s important support, so a sustained drop to $1,000 is possible. Now that the market is looking for a bottom, it is risky to buy Ethereum at the moment, I expect the bottom to be in the $800-1000, I think it will take a period of consolidation before the reversal will start. It will rise in the next few months. $2000 to $2500. A recent authoritative financial report said that many hedge funds expect a price recovery across the cryptocurrency market as well, so everything points to a price recovery coming. But it takes time to digest the impact of Fed rate hikes.
Conclusion
Of course, the future blockchain is still worth looking forward to, but the poor fundamentals have caused the overall situation. The entire crypto market has experienced a lot this year, and some form of price decline is very logical and expected, although Some people think the market will just die. But I feel like just wait for a retest of important support and then you should see strong bullish activity to end this strong bear market.
