Bitcoin Poised For Recovery, Relief Summer still In Play?
17 Agosto 2022 - 04:27AM
NEWSBTC
Bitcoin has been able to make a resurgence in recent weeks. The
25,000 USD barrier was recaptured by Bitcoin prices just two days
ago, marking the first time since June 13th. Bitcoin Poised For New
Rally In June, Bitcoin had its largest monthly decline since 2011,
falling over 37.3% to a final value of $19,925. Since then, it has
partially recovered its value and today saw its first test of
$25,000. Bitcoin continues to rule the charts despite being down
46.5% from its previous high, but its dominance has decreased to
slightly under 40% as opposed to more than 50% a few months ago.
BTC/USD trades slightly below $24k. Source: TradingView However,
Bitcoin has been relatively peacefully fluctuating horizontally
over the past two weeks between $22,500 and $24,500. At the same
time, recent weeks have seen a significant recovery in both
commodities prices and stock markets. As a result, the overall
financial markets are experiencing the anticipated summer rally.
Related Reading: Outflows Rock Bitcoin As Institutional Investor
Sentiment Starts To Turn Since attitude had reached a severe panic
state in the middle of June as a result of the financial markets’
steep, month-long decline, perception among participants has
greatly improved during the course of the most recent rebound. This
in and of itself is a well-known bear market pattern. However, it
won’t be known whether and how the bears will return until around
mid-September. Over the previous four weeks, the Crypto Fear &
Greed Index has made remarkable progress. The sentiment is still
largely scared, though. Fear still permeates the cryptocurrency
industry seven months after the devastating sell-off. Crypto Fear
& Greed Index, as of August 11th, 2022. Source: Lookintobitcoin
The feeling of being defeated permeates the wider picture as well.
There are several excellent contrarian opportunities in this
setting. Overall, there is still a contrarian buy signal due to the
scared mindset. Sharp declines in the financial markets would be
extremely detrimental to retain the current administration in
office given the midterm elections on November 8th in the US. As a
result, only a slight decline in the financial markets in September
would be more likely. The markets could then rise from those lows
until the American election. Since November 2021, the equity and
cryptocurrency markets have been under intense pressure for months,
but a broad rebound has now been going on for little over four
weeks. The Nasdaq Composite, which is heavily weighted toward
technology, has increased by over 20% from its low on June 16th as
a result of this procedure, adding over $420 billion to its market
value. This would imply that the bear market is officially over.
Related Reading: Bitcoin Price Trades A Little Over $24,000, Can It
Target $27,000? Featured image from Getty Images, chart from
TradingView, and Lookintobitcoin
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