Market situation: Has bitcoin returned to its upward trend?



Since the end of last week, there have been positive signs in the bitcoin market, while the price is rising; But now can it be said that the long-term trend of the market has changed from a decline to an upward one, and if so, what levels can further hinder the growth of bitcoin?

According to Quinn Desk, the price of bitcoin yesterday exceeded $ 45,000 after a long time and fell shortly after the upward acceleration of the market.

Yesterday, many altcoins surpassed bitcoins, which shows that investors are less willing to take risks with the beginning of the new week. Bitcoin’s dominance in the digital currency market, which has been on a downward trend over the past few days, peaked at 43% yesterday.

Today, however, buyers in the digital currency market seem to have taken a break and are once again following fluctuations in global stock market prices. The S & P500 and Nasdaq stock indices were almost unchanged yesterday. The prices of bitcoin and the shares of the companies operating on the world stock market are at the same time approaching the levels of short-term resistance on the market; A problem that may halt the recent upward trend in prices.

Although the state of some technical indicators shows a further jump in prices, especially of altcoins, the market may still face a downward correction. Atrium, for example, crossed the $ 3,000 level last weekend, followed by a reversal in the medium-term downtrend.

“The current outlook for the Atrium market is rising prices in the medium term,” said Katie Stockton, CEO of Fairlead Strategies.

Atrium prices are expected to continue to rise to resistance at $ 3,500, which is at the same level as the 200-day moving average.

Is it time for the bitcoin market to rise?

As some analytical indicators show, bitcoin has already reached the bottom of its price cycle. The chart below, published by the Delphi Digital Institute, shows how negative the annual bitcoin return has been over time; This happened mainly before the price of bitcoin reached the main floor. The jump in the price of altcoins in the coming days may be a confirmation of the change in market sentiment from a downward trend to an upward spark for the beginning of an upward adjustment.

On the other hand, as in 2014 and 2018, the return on bitcoin may be negative for several more months. Fluctuations in cross-sectional prices in declining markets may benefit short-term volatile traders; Of course, as long as the market trend completely changes from descending to ascending.

Delphi Digital wrote in its report yesterday:

Bitcoin has not yet emerged from its recent volatility, but there is an upward movement among some market investors. This improved market prospects compared to previous weeks.

Market situation: Has bitcoin returned to its upward trend?
The vertical red lines on the chart show the periods in which the annual return on bitcoin was negative.

Important price levels to keep in mind

Currently, the levels of support and resistance to bitcoin are increasing with the data on the change in the status of bitcoin investors, received from the network of this digital currency.

The chart below shows the main price levels based on the purchase price of short-term and long-term bitcoin investors, which can be compared to the current price. The average purchase price for investors entering the bitcoin market after the highest level since October (October 1400) is $ 45,900, which is a significant level of resistance, according to the Golsnood think tank.

Crossing the resistance between $ 46,000 and $ 50,000 can make a large number of short-term bitcoin holders profitable. However, if bitcoin continues not to stay above this level, some traders may sell at a loss.

Market situation: Has bitcoin returned to its upward trend?
The red line shows the average purchase price of short-term holders, and the blue line shows the average purchase price of long-term bitcoin holders.

Post Market Situation: Is Bitcoin Returning To An Upward Trend? appeared first for currency.

Leave Your Comment

Your email address will not be published.

Supportscreen tag