Bitcoin has had a few weeks of uncertainty, signaling it could have gone in either direction. However, this uncertainty has come to an end as BTC dropped further, extending its bear market and showing a strong correlation between itself and traditional markets. Over the last few weeks, traditional markets such as the S&P500 have taken critical hits, dropping significantly, and Bitcoin has too as a consequence, given its recent correlation. This also resulted in the drop in the price of the crypto market as a whole, with many other coins, such as Ethereum and Algorand, also making significant losses.
Last week Bitcoin price failed to hold the $38k support level, resulting in the coin dropping further and reaching the historical support range of around $30k. This is a particularly important level as we have seen it before being strongly significant, both during the bull run in late 2020, as well as during the bear market of 2021, where after reaching lows around this level, prices bounced back and turned into a bull market. It is currently uncertain whether this level will hold, however, there is no reason to believe not, based on previous data.