The cryptocurrency market climbed higher, with Bitcoin (BTC) gaining 8% during the last 24 hours. Despite this, all of the major cryptocurrencies are still in the red. Bitcoin has lost 46% from its highs in November, whereas cryptocurrencies Solana (SOL) and Polkadot (DOT) have each lost roughly 70%.
Ever since November, the cryptocurrency market has lost as much as $1.5 trillion in overall market value. This is a big drop. However, if you are genuine about crypto, now might be the moment to invest.
Why this Could be a Buying Opportunity
If you are a long-term cryptocurrency believer, now would be a good time to invest. If you buy at higher prices, you will reach the dollar-cost average. This means you will be able to extend your investment and cut your average cost per coin by getting less costly coins today.
However, because timing the market and anticipating highs and lows is extremely difficult, you may lose money before you make money.
More Loss for the Crypto Market
I recently discovered that Bitcoin’s support level is $35,000. If the price falls below this level, the next target is $30,000. Bitcoin has been hanging around $36,000 for the past three days, indicating that the slide has come to an end.
If the price remains above $35,000, it could rise to $40,000. This is a tough resistance level, and the coin will require a big push to break through it. This might be because of the United States regulating cryptocurrency or major hedge funds and organizations purchasing the dip.
However, because the bearish trend is still strong, this could be a corrective move before another slide lower.
The Market Drop
Profit-taking and the Fed’s aggressive approach to interest rates are among the causes fueling the crypto sell-off. Last Monday, the Bank of Russia published a report suggesting a complete ban on cryptocurrency in Russia. This could be a contributing factor in the latest cryptocurrency price drop. However, it is unlikely to have been the main reason.
What has appeared to be hurting the crypto market over the previous few months is that cryptocurrencies no longer appear to be a protection against inflation. Despite the strong inflation, prices have decreased. Instead, it behaves like a tech stock and moves in a similar manner.
Overvalued tech companies may keep falling if the Federal Reserve raises interest rates. If the relationship holds, cryptocurrency markets will almost certainly lose more ground in the following weeks.
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