FXTM information and reviews
FXTM
93%
OctaFX information and reviews
OctaFX
92%
XM information and reviews
XM
91%
FXCC information and reviews
FXCC
90%
Libertex information and reviews
Libertex
89%
FxPro information and reviews
FxPro
88%

Bitcoin may be near the bottom but not yet ready to rise


23 June 2022 Written by Alex Kuptsikevich  FxPro Senior Market Analyst Alex Kuptsikevich

The tug of war in Bitcoin near the psychologically important $20K continues. After losing 4.7% to $19.9K on Wednesday, the first cryptocurrency returned to $20.4K on Thursday morning. Ethereum is down 1.2% to $1085 in 24 hours, with the top 10 altcoins trending from a 2% drop (Tron) to a 3% rise (Solana). Total crypto market capitalisation, according to CoinMarketCap, was unchanged overnight, remaining at $900bn. Bitcoin’s dominance index fell 0.4 points to 43.1%. By Thursday, the Cryptocurrency Fear and Greed Index stood at 11 points (“extreme fear”).

Ian Harnett, a co-founder of Absolute Strategy Research, has suggested that bitcoin will collapse to $13K this year, as it is characterised by a drop of 80% from the historic highs it reached. Arcane Research noted that in 2013 and 2017, BTC fell 85% and 84%. If history repeats, bitcoin’s downside potential persists to the $10,350 mark.

However, we note that in previous bullish cycles, the strengthening of BTCUSD has been many times stronger. For example, in 2013, it was more than 90 times. In 2017, it was 20 times, while in a year-long growth cycle through the highs of 2021, we saw “only” a tenfold increase in price.

In our view, it is much more reliable to estimate that Bitcoin finds a long-term bottom near the highs of the previous 4-year cycle, where the first cryptocurrency has already rolled back. Even so, it may not be the best time to buy, as it may take considerable time before the crypto market digests the recent turmoil and enters a new phase of sustained demand from broad segments of investors, not just stressed asset hunters.

Bitcoin may be near the bottom but not yet ready to rise

The ECB chief has called for regulating the cryptocurrency lending sector amid growing activity on crypto lending platforms and problems with Celsius and Finblox. SEC Commissioner Esther Pearce believes that a bearish crypto market would benefit the industry and create a more sustainable foundation for its development.

Tesla CEO Elon Musk has said that he has never encouraged anyone to invest in cryptocurrencies and all accusations of him promoting a “Dogecoin pyramid scheme” are unfounded. Musk has recently sued for advertising DOGE for $258bn. Tether, the issuer of the largest USDT stablecoin by capitalisation, announced the release of a GBPT “stablecoin” pegged to sterling.

Share:


Related

Bitcoin's bullish stability
Bitcoin's bullish stability

Bitcoin has been down 1.2% over the past seven days, trading at $23,600. These are tiny moves by crypto market standards. Indeed, the first cryptocurrency has been dealing...

8 Aug 2022

Bitcoin remains in ascending corridor
Bitcoin remains in ascending corridor

Bitcoin was down 3.5% on Thursday, ending at around $22,500, but almost fully recovered its losses on Friday morning. As a result, changes over the past 24 hours are minimal...

5 Aug 2022

Bitcoin fails to keep up with stocks
Bitcoin fails to keep up with stocks

Bitcoin has added 0.8% to $23100 in the past 24 hours, a worryingly weak result. Ethereum strengthened 1.3% to $1650. Other leading altcoins gained between 0.9%...

4 Aug 2022

The Crypto market won't rush to growth
The Crypto market won't rush to growth

Bitcoin continues its soft landing towards the lower end of the upward corridor, losing around 0.5% over Tuesday and retreating to $23K. Ethereum has strengthened by 2.7% to $1630 in the past 24 hours...

3 Aug 2022

Bitcoin retreats from the upper boundary of an uptrend channel
Bitcoin retreats from the upper boundary of an uptrend channel

Bitcoin has lost 2.1% in the past 24 hours, pulling back to $22.9K. Ethereum has fallen 6.5% over the same period, to $1580. Top altcoins fell from 2.7% (XRP) to 12% (Polkadot)...

2 Aug 2022

Bitcoin is climbing out of the pit but is not yet ready to fly
Bitcoin is climbing out of the pit but is not yet ready to fly

Bitcoin closed Thursday near $24,000, retesting that area after a failed attempt to climb higher in the middle of last week. The first cryptocurrency has added 3.8% over 24 hours...

29 Jul 2022


HFM information and reviews
HFM
87%
IronFX information and reviews
IronFX
86%
FXCM information and reviews
FXCM
85%
Pepperstone information and reviews
Pepperstone
84%
NordFX information and reviews
NordFX
83%
LegacyFX information and reviews
LegacyFX
82%

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.