Finally the crypto recovery? Here’s What To Expect From Bitcoin And Ethereum In Q3 2022

Important information:

The price of bitcoin fell by almost 56% in the second quarter of 2022. Also see: ApeCoin Price Forecast 2030 – APE Long Term Forecast – feat. Crypto Academy

The global crypto market capitalization and most major crypto assets have seen significant declines and range trajectories over the past three months.

Globally stagnant futures and options markets and low trading volumes were a constant in the bear market.

A long, cold winter in the bear market of the cryptocurrencies have participants look at price charts to find relief from patterns. Major crypto assets – bitcoin (BTC) and ether (ETH) – have been trading around their lower support levels for over a month.

This market stagnation has left investors and traders desperate for profit. As another quarter of 2022 begins, the crucial question remains whether cryptocurrency markets can chart a recovery for the foreseeable future?

Another quarter, new losses?

Bitcoin’s price action in June was one of the worst monthly performances in the history of the coin, with the price of bitcoin dropping nearly 38% over the month. This may interest you: Top cryptocurrencies for potential x50 returns: Cronos (CRO), Binance Coin (BNB), and Logarithmic Finance (LOG)† Long-term and short-term losses drove out short-term holders and new entrants, leaving only inflexible HODLers.

Glassnode analysts pointed out in a recent report that last month’s price action by major crypto only matched the 2011 bear market for the worst month crown on record. To give you an idea of ​​the scale, BTC prices were below $10 in 2011.

Bitcoin’s price has consolidated over the past week, absorbing losses for the month and maintaining momentum around its all-time high of $20,000 in 2017.

Over the past week, the price has fallen to a brief midweek low of $18,741, before rallying to close at $19,139 by the end of the week. At the time of writing, bitcoin was trading at $19,926, posting a gain of 4.20% on the daily price window.

While the main asset is trading 71.20% lower than the all-time high of USD 69,000, the current price action still remains within the narrow range of USD 21,600 and $18,550.

Can Bitcoin and Ether Losses Track?

Despite the start of the new quarter, there were no positive changes in general market sentiment. In fact, to the surprise of many newbies, analysts estimate that bitcoin and ether could take even more losses in the coming weeks. Also see: Mitsubishi UFJ abandons its blockchain project and launches an electronic wallet

After half a year, BTC and ETH are worse than they were a year ago. Both bitcoin and ether ended the second quarter of 2022 with negative quarterly gains as the macroeconomic environment in financial markets deteriorated.

The Federal Reserve continued to raise interest rates as it tried to contain inflation; however, this approach has had a huge impact on the growth and market capitalization of risky assets such as cryptocurrencies. With increasing fears of a recession, cryptocurrencies may be going through tough times.

Japanese financial services firm Nomura revealed in a note Monday that major economies could plunge into recession in the next 12 months “amid tighter government policies and rising costs”. These recession stories have also sparked fear among investors and traders.

Notably, bitcoin saw a loss of more than 57% quarter over quarter, while ether dropped more than 67% over the same period. Looking at the price action of the two major assets, it is safe to say that BTC and ETH could accelerate their losses during the quarter.

Historical price data shows that BTC fell 68%, 40% and 2.8% in the third quarter of the year in previous bear markets in 2011, 2014 and 2018. This data shows that the third quarter has not always been a pleasant one for bitcoin and therefore for the broader market.

Moving forward, the performance and recovery of bitcoin and ether prices will depend on macroeconomic conditions and strong hands in the market that could push the price toward recovery.

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Be vigilant and consult your financial advisor before making any investment decision. Mirror-Mag cannot be held responsible in case of bad investments. Before using any third-party service, do your own research.

Thomas Estimbre
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