Bitcoins Price Now Caught In A State Of Dilemma. What's Next?

Bitcoins price now is a big roller coaster, with the biggest digital coin on the market, experiencing high volatility for some weeks now. Although the digital coin is down over 60% since its all-time high in November, it still runs the risk of even falling more.

The price of Bitcoin has continued to gain and shed value rapidly for some time now, leaving experts and investors in a perplexed state, trying to guess where the coin is headed next. Numerous reasons have been cited by numerous experts as to why the price of bitcoin continues to experience fluctuations.

Inflation has been the most common reason for circulating, as some experts believe the changing interest rates and the decreasing value of some of the world's strongest currencies have had a major effect on the price of Bitcoin. In the early stages of May, Bitcoin (BTC) and ether (ETH) saw a spike in price on the news of interest hikes by FEDs, rising about 3.5% and 1.2%, respectively.

The current state of the Chinese cryptocurrency market has also been tagged as a major influential factor in the price of Bitcoin. In the latter stages of June, China placed a ban on crypto transactions and restricted the major banks from engaging in any kind of crypto operations.

The aftermath of China's decision to ban crypto activities has been widely bearish sentiment across the country. According to Wu Blockchain, a recent survey of 2,200 people conducted on the China-based social media platform Weibo revealed that 8% would buy Bitcoin when its price drops to $18,000, while 26% of the respondents would keep waiting until the price of Bitcoin drops to $15,000.

The survey also revealed that the majority of the people anticipated the price of Bitcoin to fall even further, with 40% saying they would buy the coin should it drop to $10,000. On-chain data also shows investors in the United States are more bullish on Bitcoin than their Asian counterparts since June 2022.

Bitcoins price now remains a pale shadow of itself and now has a cloud of regulations hanging over it. The bearish expectations from the Asian market have also led to investors choosing to stay on the sidelines until bitcoin drops further.

Bitcoin has enjoyed some upward momentum for some days but some experts are describing its current situation as range-bound, now relying on the next step of the global economy. According to some crypto experts, investors' thinking about investing in the cryptocurrency market will be influenced by whether or not the world economy slips into a recession.

When comparing the Bitcoin price movement with the 200-day moving average, Will Clemente, a Lead Insights Analyst at Blockware, saw that BTC had only been this much below its 200-day moving average a few times (2%).

Each of these scenarios made buying Bitcoin seem terrible. Clemente, however, noted that BTC has historically risen whenever it has been in a situation like this, advising investors to take a risk on the current price of the digital coin.