Finally the crypto recovery? Here’s what to expect from Bitcoin and Ethereum in Q3 2022

Key information:

The price of bitcoin saw a drop of almost 56% during the second quarter of 2022. See also: ApeCoin Price Prediction 2030 – APE Long Term Forecast – feat. Crypto Academy.

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

Broadly stagnant futures and options markets and low trading volumes have been a constant in the bear market.

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

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

Another quarter, more losses?

Bitcoin’s price action in the month of June was one of the worst monthly performances in the history of the coin, with bitcoin’s price dropping almost 38% during the month. This may interest you: The main 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 newcomers, leaving behind only inflexible HODLers.

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

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

Over the past week, the price has fallen to a brief mid-week low of $18,741 before recovering to close at $19,139 by the end of the week. At press time, bitcoin was trading at $19,926, recording gains of 4.20% on the daily price window.

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

Can bitcoin and ether losses follow?

Despite the new quarter taking off, there were no positive changes in overall market sentiment. In fact, to the surprise of many newcomers, analysts have estimated that bitcoin and ether could suffer further losses in the coming weeks. See also: Mitsubishi UFJ abandons its blockchain project and launches an electronic wallet.

After half a year, BTC and ETH are worse than a year ago. Both bitcoin and ether closed Q2 2022 with negative quarterly gains as the macroeconomic environment in financial markets deteriorated.

The Federal Reserve continued to raise interest rates while seeking to control inflation; however, this approach has had a huge impact on the growth and market capitalization of risky assets like cryptocurrencies. With rising recession fears, cryptocurrencies could face tough times.

Japanese financial services giant Nomura revealed in a note on Monday that major economies could slip into recession “in the next 12 months amid tighter government policies and rising costs.” These tales of recession have also raised fears among investors and traders.

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

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

Going 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 towards recovery.

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

Thomas Estimbre
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