Bitcoin returns from the 6-week price floor; What’s the next move?



As bitcoin jumps from its 6-week low, many traders expect the uptrend to begin at current levels. However, some market analysts and economists have differing views, warning of growing fear among investors and a further decline in bitcoin.

According to the Coin Telegraph, the price of bitcoin returned to the top of the zone of 39,000 dollars on April 27 (May 7), after falling to its lowest level since mid-March (late March).

Bitcoin returns from the 6-week price floor;  What's the next move?
Bitcoin price chart in 1 hour view.

At the time of writing, the world’s largest digital currency has fallen 3.5% in value over the past 24 hours and is now hovering close to $ 39,100.

Bitcoin faced new challenges after the start of trading on the US stock market on April 26 (May 6) and again followed the downward trend in the stock market, even reaching the level of $ 37,700 twice.

Although analysts have previously seen the area around 37,700 as an opportunity to increase buying pressure (support), some still do not accept that selling pressure has ended at this level.

Kaleo, a popular digital currency trader and analyst on Twitter, said current growth will not last long and that the main problem will begin when the uptrend of bitcoin slows.

He said on Twitter:

The pressure on sales that will be formed after the end of the current jump will be terrible.

“Michael Telegraph analyst Michael van de Pope said:

Currently, the price performance of bitcoin does not show an upward trend. It is difficult to detect an upward trend; Because bitcoin is experiencing a downward trend after each jump.

The US dollar showed no signs of halting its upward trend over the past week, boosting pressure to sell in the digital currency market. The dollar index (DXY), which compares the value of the US dollar with other major world currencies, has already reached close to the peak recorded in March 2020.

Graph of the price of bitcoin against the dollar exchange rate index in a weekly view.
Comparison chart of bitcoin prices and dollar index in weekly view.

Lynn Alden, an economist and founder of an investment firm, tweeted:

The US dollar index rose more than I could have imagined due to unexpected decisions by politicians. Therefore, we need to be aware of the market problems that arise when this happens. This is not a good thing. That is, the United States will not increase the pressure to buy the stock market by raising bank interest rates, but all assets will be damaged.

Traders of digital stocks and currencies have sensed the danger

Traders in both traditional financial markets and digital currencies can clearly see the benefits of their sentiment.

The index of fear and greed in the digital currency reached its lowest level since April 12 (April 23), ie. about 21 out of 100, which shows strong fear among investors.

Index of fear and greed in digital currencies.
Index of fear and greed for digital currencies.

The stock market fear and greed index, which until recently remained neutral in the “neutral” region after the backlog of digital currencies, shows 27 out of 100 strong fears among traders on April 27 (May 7).

Stock market fear and greed index.
Stock market fear and greed index.

After bitcoin returns from the 6-week price floor; What’s the next move? appeared first for currency.

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