How Long Will the Decline in Bitcoin Prices Last

For the third day in a row, the price of the BTC/USD currency pair against the US dollar is trying to bounce higher, but its gains did not exceed the level of $20,911.recovery came after the sale of the most popular currency pair in the cryptocurrency market towards the support level of $18,900. The currency pair is stable around the level of $20,800 at the time of writing the analysis, waiting for any new. In general, the US dollar remains stronger with expectations of more US interest rate hikes and higher rates than previously expected, along with the demand for it as a safe haven.

SEE ALSO: Survey: More Investors Say Bitcoin Likely To Hit $10K Instead of $30K

Cryptocurrency trading volumes plummeted amid a horrible first half of 2022 for the industry. Volumes of spot and derivatives trading via exchanges have fallen by more than 15% since May to about $4.2 trillion and reached their lowest levels since January last year. The month of June alone saw spot trading volumes drop by almost 28% to $1.41 trillion as bitcoin declined, the lowest level since December 2020, according to data compiled by Crypto Compare.

Meanwhile, derivatives trading volumes fell by 7% during the month, the lowest level since July 2021. Derivatives are of great importance in the field of digital currencies, accounting for more than half of the market. For market watchers, the trend makes sense given the declines in bitcoin and Ether prices, both of which are down more than 70% from all-time highs last year. Bitcoin fell by 15% on June 18 to $17,599, the lowest price since late 2020. This reflects investors ' caution.

Commenting on the performance, Katie Stockton, co-founder of Fairlead Strategies, said in a message: "trading volume decreased due to reduced excitement on the part of investors in a cyclical bear market "."Until cryptocurrency prices come out of the bear market cycle, which may take months, we can expect the volume to be below average."

Cryptocurrencies, along with other riskier assets, have had a hard time this year amid a higher interest rate environment, as global central banks try to curb hyperinflation. The MVIS Crypto Compare Digital Assets 100 index of some of the largest coins has fallen by 60% this year. Bitcoin futures contracts last month on the Chicago Mercantile Exchange, with a volume of $29 billion, reached their lowest trading volume since July 2021, while Ether contracts fell by more than 20%, indicating a "decrease in speculative activity," according to CryptoCompare. The decline in trading volume occurred across several platforms, including Binance, OKX and FTX.

The trend marks a reversal from the past two years, when retail investors were stuck in their homes during lockdowns or looking to take advantage of rising prices, crowding in cryptocurrencies and other risky bets.

The cost of mining a single bitcoin has fallen to a ten-month low, as mining hardware has become more efficient, and the difficulty has decreased by 6.7 % since its peak in May.

Technically, there is nothing new on bitcoin prices, where the price ranges casually downward and negative pressure dominates the prices as long as the price ranges below the second resistance areas of 23000 in case the prices go up, and the stability above it cancels the negative outlook and we will see positive prices again towards new resistance areas،

However, if the price fails to hold above the third resistance, the negative outlook remains stronger, and it is expected that prices will fall further towards the next support areas and the third support will break 17000, we will witness a strong decline in prices towards new support areas.

Areas of resistance

22000

23000

24000

Support areas

19000

18000

17000

SEE ALSO: Bitcoin: What Could Spark a Sharp Uptrend

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