Bitcoin Analysts Talk Bottom, But Next Week Will Be Exciting » Crypto Insiders

Bitcoin (BTC) lost more than 17% of its value in the past few days. The decline seems to be cooling off a bit for now and the bitcoin price cautiously begins to turn green, but the fear is still very high.

Some analysts speak of a possible bottom, but that seems to depend mainly on macroeconomic developments, especially the policy of the Federal Reserve. The Federal Open Market Committee (FOMC) will hold another meeting next Tuesday and Wednesday, which could again have major consequences for financial markets.

Bitcoin price makes recovery attempt

Bitcoin initially made an additional dip yesterday morning all the way to $34,000, the lowest price since late July. Then the price immediately made a big bounce and rose to $36,000, but the resistance there was still too strong.

Bitcoin gradually fell again, but this time the price found support around $34,500. Whalemaps indicated in advance that the price might find support here because whales had bought a lot here.

Bitcoin then slowly started to recover slightly and rose again overnight to $36,000. However, this morning bitcoin was rejected again here. Bitcoin comes in at $35,850 at the time of writing Binance and €31,600. on Battle.

What can we expect?

However, whether bitcoin has actually reached a bottom is highly debatable. As mentioned before, the direction of the bitcoin price is currently mainly determined by macroeconomic conditions. In addition, the market is still somewhat overleveraged so if the price dips again, it could lead to another cascade of liquidations.

In contrast, the on-chain data is still a very bullish drawing picture. Bitcoin may be oversold and the miners still don’t capitulate, despite the mining difficulty being higher than ever.

Also, the BTC supply on cryptocurrency exchanges continues to decline, a bullish sign.

That said, the demand is not high enough at the moment to include a bounce to cause. Due to the great fear in the market, many investors remain hesitant. So there is definitely a chance that this was not the bottom and a dip below $30,000 is still possible. As HODLers hold out but demand is not strong enough to trigger a breakout upwards, we may also be entering another period of consolidation.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.