Is it ‘game over’ for Bitcoin?

Lavina Daryanani
Source: Pixabay

The past few months have been quite rough for Bitcoin. From its double peak high of $69k created last year, the asset is already down to $16.5k. In fact, as illustrated below, the current level around which Bitcoin has been hovering is at par with that of November 2020.

Of late, nonetheless, the market’s condition has seemingly stabilized. On one hand, the global crypto market cap noted a mere 1.2% downward deviation over the past day. On the other, Bitcoin shed only 0.5% of its value in the same time frame.

BTC/SUDT | Source: TradingView

Also Read: Bitcoin re-visits 2017 highs: Will it trigger recovery?

Game over for Bitcoin?

Whenever the market is stuck in sustained bearish periods, participants’ trust gradually starts eroding away and fear starts getting instilled. Such has been the case lately too. The current reading of the F&G index points towards “extreme fear,” confirming the said narrative.

Popular commentator StockMoney Lizards recently took Twitter to claim that Bitcoin is currently in its “game over” phase. Well, this is not the first time such a scenario has unfolded.

As illustrated below, whenever Bitcoin’s price has traded around the lower part of the circumference of circles, it has seen a “game over” phase. Post that, however, recoveries have been noted. In a few cases sharp bounce backs have been registered, while during other times, the process has been gradual.

So, even though we’re figuratively in the game over phase, it does not mean that the game is literally over for Bitcoin.

Owing to the collapse of FTX, the rough patch—yet again—renewed for Bitcoin. A few days back, StockMoney Lizards proclaimed that the market indeed witnessed a “black swan event.” Nevertheless, as highlighted in the chart below, the history of BTC has been filled with similar events. Per the commentator,

“… the market will recover from it as it did in the past.”

Also Read: Bitcoin, Ethereum, MATIC inflows claim new 14-week high