Crypto prices hit again another support price as expected. In a previous article, we predicted that Bitcoin was about to drop lower as part of a normal correction. However, things seem to be alarming as prices went lower than expected. Will Bitcoin crash to 20k? In this Bitcoin price prediction, we’re going to analyze some Bitcoin targets for the short to medium term.
But first, let’s answer some popular questions about Bitcoin!
Bitcoin Intro: The Basics you MUST Understand
What is Bitcoin and how does it work?
Bitcoin is a digital currency that operates on a decentralized network called the blockchain. It allows for peer-to-peer transactions without the need for intermediaries like banks or financial institutions. Transactions are verified by network nodes and recorded on a public ledger.
Who created Bitcoin and why?
Bitcoin was created in 2008 by an anonymous person or group using the pseudonym Satoshi Nakamoto. The exact reasons for creating Bitcoin are not clear, but it was designed to provide an alternative to traditional currencies and to address issues of centralization and trust in the financial system.
How is the value of Bitcoin determined?
The value of Bitcoin is determined by market demand and supply. It is often compared to gold, with its limited supply and scarcity contributing to its perceived value. Other factors such as adoption rate, regulatory developments, and media coverage can also affect its value.
How are Bitcoin transactions verified and processed?
Bitcoin transactions are verified by network nodes through a process called mining. Miners use powerful computers to solve complex mathematical puzzles, and once a block of transactions is verified, it adds to the blockchain. The miner who successfully verifies the block is rewarded with a newly created Bitcoin.
How secure is Bitcoin?
Many consider Bitcoin to be very secure due to its decentralized and encrypted nature. Transactions are verified by a network of nodes, making it difficult for any single entity to manipulate the system. However, Bitcoin exchanges suffered many hacks, and users need to take precautions such as using strong passwords and storing their Bitcoin in secure wallets.
Bitcoin Performance: Is Bitcoin Down?
Bitcoin prices are still going on an uptrend but simply retraced from the resistance price of around USD 25,000. We set out in an earlier article a target of around USD 23,500. However, Bitcoin breached this support price lower and risks sliding further. This usually signals lower trends, which might lead to further losses across the crypto market in general.
Bitcoin Price Prediction: Will Bitcoin Crash to 20K?
Since Bitcoin breached the $23,500 price mark, we expect further declines toward the uptrend line shown in figure 2 below. The first target for Bitcoin would be around $22,000.
If things continue to go south, Bitcoin can continue going lower. The lower targets are as follows:
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