Crypto Week: Bitcoin Goes Down as Scheduled

Regular price swings seen at the beginning of the week may signal that Bitcoin prices are set to dive even deeper. The logic is simple – bears are collecting stop-loss orders during price spikes and then trying to break through strong support levels. Bears are always less present in the market than bulls, and they need to put in more effort to drag prices down and retreat, at some point, in order to later make another downside attempt. The next downside target is located at $17,800.

LUNC token (Terra Classic) prices surged after Binance cryptoexchange announced it will burn all commission on the token. This announcement is unlikely to affect token prices in the long term. The new deflationary action is always useful for any crypto asset, but Terra Classic remains a crooked-like project with a tainted reputation. There seems to be no life inside the project as its blockchain is mostly occupied by speculators.

The most active blockchains are defined by the number of active wallets within a blockchain over the last 30 days. BNB Chain has recorded 8.78 million active wallets, Ethereum – 6.11 million, Polygon - 2.44 million, Ronin – 426,000, Arbitrum – 389,000, Avalanche – 269,000, Optimism – 186,000, Fantom – 142,000, and Celo – 58,000. So, only three projects in the market are in focus right now while the others do not seem to be impressing the crowd. There are also some relatively popular projects like Solana, Near, Cosmos, and Harmony. So, it would be hard to attract more active investors to Terra Classic for a long period of time.

There are no reasons for any rebound in the crypto market as investors are rushing into a safe-haven U.S. Dollar assets. The U.S. Dollar index has risen by more than 20% this year, and any reasons for a correction are yet to be seen. Even the European Central Bank (ECB), with its tardy decision to raise interest rates by 75 basis points and its dedication to continue to hike interest rates, , could not overrun the Federal Reserve (Fed) that is not only raising rates but is clearing up its balance sheet by $95 billion per month. The ECB could not allow itself to move in this direction. The European economy is now suffering from negative economic factors, not to mention the Russia-Ukraine war that is raging on the Eastern side of the EU. 

Risky assets like stocks and cryptos would remain under pressure for an indefinite period and may delivery some recovery signs sometime in 2023. So, a long-term forecast for Bitcoin prices remains intact at $12,600 before a real recovery could start.