For years now, there has been back-and-forth about where Bitcoin’s value will stabilize. The over under for bitcoin has been about $100K by different experts. In the 2017 to 2018 explosion, many believed that Bitcoin would hit $100k by 2022, and when it went to $69k in 2021, it seemed like it would happen.
Unfortunately, 2022 hasn’t been good for the crypto world, and the market is experiencing a major crash.
Over the past few weeks, Bitcoin and other cryptocurrencies have lost a massive percentage of their all-time high value. Currently, Bitcoin is dancing between $29k and $30k, and many investors are speculating that once it can hold at $30k, we might experience a bull run that can ride the value to $40k and beyond.
However, what happened to LUNA recently has put many people in a frenzy, especially the newcomers who are not used to a major crash. Therefore, there is panic in the market. We might see more crashes or enter a new era of more stable valuation, reducing the market’s volatility.
We can’t say how the future trend of the market will turn since the indicators are all over the place. Therefore, will bitcoin make it to $40k this year? Keep reading to find out our thoughts.
Analysis of the Crash
Many experts say the crash came with numerous signs on the market before finally hitting, and if you follow their analysis, you’ll see that it is based on historical events.
Every old crypto investor knows how crazy the market can get, and we’ve even witnessed Bitcoin crash more than 60% from its all-time high.
Also, there is a historic affiliation between the crypto market crashing and this period in the calendar. Studies show that the market usually experiences a slowing down or bearish run during these months.
However, the crash this time is among some of the biggest in the history of Bitcoin, and it is taking longer to recover.
As a result, it doesn’t seem to be the usual fall of the market. It is looking like a purge to take out the overvalued cryptocurrencies without solid value-adding projects backing them. If that is the case, it might take a long time for the market to stabilize and find a resistance point.
LUNA, UST, and Their Implication
One of the hardest-hit projects on the market is the LUNA and UST projects. These projects were supposed to make the crypto world better, and they had an automated mechanism to ensure that both projects could help regulate the other, ensuring that the value doesn’t fall far too low.
However, since they are interdependent, when the crash hit and both were affected simultaneously, we saw the flaw in the mechanism, and one could not regulate the other.
Therefore, LUNA lost more than 90% of its value, dropping from $100+ to below the $0.1 marker, and many people lost millions of dollars to the project.
The crash of these projects affected the market, and it took us back to the days of Bitconnect, the Ponzi crypto project that fell to $0 and crashed out of the market. LUNA’s crash brings back memories, and many investors have lost all hope of ever recouping their investment, which majorly affects the crypto market.
Mitigations and Saving Graces
Many developers and companies have been looking for saving grace to see how they can revive the dying projects. Because if they can bring back LUNA and UST, the market will take a massive turn for the best.
Although LUNA, at one point, after going below $1, made a +1,700% gain within 24 hours, which felt like we were getting back to safety.
However, it soon lost most of the gains and dropped further in value. Therefore, we might have to accept that those projects are beyond saving and look for other ways to ensure something like this doesn’t happen again.
Is the Next Resistance Point $25k or $31k?
The next resistance point for Bitcoin is crucial going forward as it will give us a good view of how the market will go.
Although it seems we are stabilizing at $29k, some experts believe that we see a drop, and the next point will be $25k, which means going to the $40k mark this year might be impossible.
However, some optimistic analysts believe the next resistance point will be above the $30k marker, somewhere around $31k to $32k, and if this can happen, we can see a bull run soon.
Therefore, we are looking at the next point from $29k as it is crucial to how the market will trend.
From how it’s been going for some weeks now, we believe Bitcoin can hit $40k again before the end of the year. However, the problem is if it can hold on to the position and make $40k at its end of the year resistance point. Therefore, we look forward to what it is to come in the crypto market.