Bitcoin (BTC) Price Prediction: Will It Recover to Previous Highs or Revisit 2022 Lows?

Bitcoin price is on a downward trajectory. Over the past month, the cryptocurrency has dropped by 17%, hitting its lowest level since February 2024.

Bitcoin price is in a downward trend. In the last month, the cryptocurrency fell 17%, reaching its lowest level since February 2024. Although its price has recovered slightly, rising 1.33% in the last five days, this small increase is far from compensating for the significant decline seen in recent weeks.

Bitcoin price fell as low as $53,500 before buying interest revived and then regained its former support at $56,500. Currently trading around $57,800, Bitcoin has fallen below the critical $60,000 mark.

But the real question is: Will Bitcoin rise to its previous highs or fall further, revisiting the lows that wreaked havoc on the crypto market at the beginning of 2022?

Bitcoin What led to the recent decline of ?

There are currently two main reasons leading to the decline in Bitcoin price. The first is the bankrupt Tokyo crypto exchange MT, which was once a crypto platform that collapsed after most of its crypto assets were stolen by hackers between 2011 and 2014. Start of distribution of Bitcoin confiscated from Gox.

The second factor affecting the Bitcoin price is the German government's large-scale Bitcoin sale. The German government has sold significant amounts of Bitcoin worth hundreds of millions of dollars in total over the weeks.

Sales have accelerated recently, with approximately $75 million worth of Bitcoin transferred to exchanges such as Coinbase (NASDAQ: COIN), Kraken and Bitstamp. These sales were seen as part of a broader strategy, with $315 million worth of Bitcoin sold since June 15, with total sales exceeding $390 million in less than a month.

Despite market concerns, these sales increased Germany's total assets It constitutes a small part and 40,359 Bitcoins remain in reserves. Interestingly, the German government recently moved back 1,915 Bitcoins ($111.5 million).

Market Reactions

As Germany continues to liquidate its Bitcoin holdings, analysts see this as an opportunity to capitalize on the decline. The German government's ongoing sales are being closely monitored and analysts are predicting short-term market volatility. The strategic implications of these actions are an important topic of discussion for both Germany's financial future and the broader cryptocurrency market.

Some suggest that Bitcoin's recent performance may be a "summer recession" observed in previous cycles. This analysis stated that the future of the cryptocurrency in Q4 depends on it regaining and maintaining significant price levels in the coming weeks.

Another point contributing to the market unrest is the visible decline in whale transactions, which fell from 17,000 to less than 12,000 in a week. drop significantly. This decline may indicate waning interest from larger investors or a possible consolidation phase.

Prominent trader Peter Brandt made a bearish prediction suggesting Bitcoin could fall to $44,000. Brandt notes that the current correction should worry investors, with Bitcoin breaking the 200 exponential moving average, which has been a historically reliable support line.

This support breach raises the possibility that a more significant correction may be in progress.

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