Bitcoin technical analysis
Bitcoin rose 4.9% on Monday, ending at around $31,500. However, on Tuesday morning, the leading cryptocurrency crashed 7% to $29.5,000, the second such bear attack in the past seven days. Both were of a similar magnitude, but the latter is expected to have a more substantial negative effect. This more than offset Monday’s gains and temporarily brought the price back to May 30 levels. BTCUSD consolidation has been going on for over a month.
Previously it formed in the form of a triangle with a decreasing amplitude of fluctuations, but since the end of last month it has become more like a sideways pattern, from which it makes several unsuccessful attempts to break upwards .
Market momentum on Tuesday morning is a reminder that the market can no longer rally like it did in 2020. Bitcoin’s prolonged sideways slide is turning current prices into the norm, although current levels looked like a good long-term buy. term two months ago. 2018 and 2019 teach us that such consolidations can last for months and often lead to new sales from frustrated employees who earn quickly. In our view, bitcoin’s bear market is not over yet, although it has fallen significantly.
When will Bitcoin enter the bull market?
The market is full of rumors that short-term buyers have already capitulated, backed by Kathy Wood. But the entire bear market rarely ends in this phase. Much more often, a bull market begins when mid-term investors and even some long-term investors capitulate, bringing stressed market professionals into play. It is unlikely to reach that point before the price returns to 2017 highs. Bitcoin’s short-term volatility is irrelevant, said MicroStrategy CEO Michael Saylor. He said BTC is the safest thing in a highly volatile world and is more suitable for long-term investing than trading.
According to a survey by The Economist, 37% of respondents in major global economies want their governments to adopt cryptocurrencies as legal tender.
by Alex Kuptsikevich, Senior Market Analyst at FxPro