Bitcoin has been hovering below $ 50,000 over the past 75 days, and the current trend has somewhat exhausted traders; But what made the market unable to pass this level?
According to YouTube, Will Clemente, a senior statistical analyst at Blockware, said the price of bitcoin has fluctuated in an upward channel over the past two months. This shows that the market for this digital currency is still unsure of the trend to follow and is waiting for more signs.
As you can see in the chart below, the channel through which bitcoin moves is formed in early February. At the time, the digital currency was priced at approximately $ 45,000 and rose to $ 37,000 after a revision. Then the market followed another upward trend.
In the next upward trend, buyers still could not break the resistance of the Bitcoin channel and the price of this digital currency fell again to 38,623 dollars. Unsuccessful attempts by traders to break the resistance of bitcoin may indicate low purchasing power for micro-investors as well as for corporate investors.
The two main factors in the current market situation are the fear and distrust of traders. Large or institutional investors do not bring new money to the market because there is no clear signal in the market and traders want to minimize their risk in the digital currency market and traditional financial markets. As we saw in the fluctuations in February, the existence of new liquidity is essential for the rise of bitcoin.
In addition, statistics on bitcoin holdings in exchanges show that investors are constantly withdrawing funds from centralized exchanges and depositing them in private portfolios. The high rate of outflow of exchange offices shows that liquidity in the digital currency market is slowly declining.
At the time of writing, the world’s first digital currency is trading at $ 38,770. The most notable event this week will be the rise in US bank interest rates that financial markets have been waiting for since early 2022.
Why is Bitcoin under $ 50,000? The answers of prominent analysts first appeared in Digital Currency.