Hello!
Today 07/05/2022 Bitcoin continues to fall to values, that since I started trading cryptocurrencies I never saw, even at some point of the day it went down to USD 34 K, it is clear that the resistance is the line of USD 35 K.
Also most of the cryptocurrencies had a drastic decline in their values, indicating that there is some correlation in their values, the NFT market seems to remain safe from the current trend.
Faced with this scenario, 2 questions arise for me the first one:
A.- How long will the current downtrend persist?
B.- Will the value of BITCOIN continue to fall?
A.- Before the first question, I think the following: According to the reports I have read, the interest rate hike by the US Federal Reserve was the trigger for the decline in technology and risk assets, such as bitcoin, why?
Because the aforementioned interest rate hike made other types of safer assets more attractive to investors than risky assets such as bitcoin.
In this regard, it should be considered that the Federal Reserve is planning another interest rate hike in July 2022.
Another fact to keep in mind is that there has already been a very sharp decline in Bitcoin values during May to July 2021.
Therefore, considering the above-described antecedents, I come to the conclusion that the American monetary policy has a direct impact on this type of assets, so it is very important information for the purpose of making some kind of monitoring or forecast of the values of cryptocurrencies.
At this point, I do not know how long the current downward trend will persist, but I do think it is very important to follow closely what happens with U.S. politics and technology assets, such as Apple, Microsoft or Nasquad, because if there is any movement there, it will affect the cryptocurrency market.
B.- This second question is partially answered with the observations made in the first part.
There are also 2 data that catch my attention, first, if the second interest rate hike planned by the Federal Reserve in July this year, will have the same impact as the current one, i.e. it will involve a decline as important as the current one in the values of cryptocurrencies.
The second data, is the previous important drop, that I have seen in Bitcoin, during the period from May 2021 to July 2021, according to data from Coinmarket website, I share link for you to see it.
It involved a decline from USD 58,240 to 37,458, then with some ups and downs came down to USD 29,807, finally made a very rapid rise to USD 40,018 to continue rising from there.
So I think it is possible that bitcoin could go down a little more, even so I personally have the impression that it is too early to analyze predictions in this regard.
CONCLUSION: I think there are too many uncertainties regarding the future, but I have only one certainty, that BITCOIN will go up again, the natural volatility of this type of asset explains it, as well as the interests that are probably behind, equally all the described conjuncture is reduced to an act of FAITH, in this case I believe that BITCOIN will go up again (honestly every night before sleeping I look at the screen of my cell phone, while I caress the numbers that represent my cryptocurrencies and I ask God to take care of them and not let them fall so much in value .... amen).
See you next time!
DISCLAIMER I: Everything written in this article, is simply the opinion of a man without specialized knowledge in the matter, that 2 months ago got acquainted with cryptocurrencies.
DISCLAIMER II: I am not an expert. I am just starting in this. I do not give investment advice (nor do I pretend to). I only explain in this blog my personal experience in the world of cryptocurrencies from a practical point of view and oriented to anyone can learn without prior investment and without spending a dime.
If, at your own risk, you decide to invest in any of the products mentioned here, do it always after having studied and researched it well and consulting other sources with other points of view. Do not invest money you may need. Investment in crypto-assets is not regulated, it may not be suitable for retail investors and you may lose the entire amount invested.
