Back In Crab Mode, Bitcoin Bullish Potential Capped For The Coming Months?

2022-7-13 18:00

Bitcoin is back below $20,000 and seems on track to re-test the bottom of its current range. The cryptocurrency was showing signs of recovery, but it was rejected near the critical resistance zone at around $22,000.

Related Reading | Tezos (XTZ) Nears 3-Week High – Can Bulls Barrel Towards $1.80?

At the time of writing, BTC’s price trades at $19,800 with a 3% and 2% loss in the last 24 hours and 7 days respectively.

BTC trends to the downside with sideways movement in recent weeks on the 4-hour chart. Source: BTCUSD Tradingview

In a recent market update, trading desk QCP Capital addressed the factor that might contribute to BTC’s price moving sideways for the foreseeable future. These included the upcoming Mt. Gox redemptions, and global inflation.

On the probability of the Mt. Gox repayments negatively impacting Bitcoin and the crypto market, QCP Capital wrote:

It is impossible to be certain about the exact impact, given the numerous cross-arguments and theories surrounding the release. Our main takeaway is that there is a high chance of BTC supply flooding the market soon.

In the best-case scenario, Bitcoin will face downside pressure allowing Ethereum and other altcoins to gain some breathing room. The sector might record some gains after an extended period of increased Bitcoin dominance.

The worst-case scenario is additional selling pressure for Bitcoin, as QCP Capital said, and the entire crypto market pushing prices to their yearly lows or deeper into bear market territory. A lot depends on Mt. Gox’s unlock schedule, and if the victims will succumb to market uncertainty or wait for BTC’s price to reclaim previous highs.

QCP Capital made the following prediction on what could be in store for Bitcoin in the short term.

We’re not outrightly bearish at these spot levels but we think the sudden demand for call structures might have pushed the risk reversal levels a bit too much to the topside. Our base case continues to be sideways trading with the risk of sharp dips and upside capped (…).

What Could Push Bitcoin Back Into The Green

Tomorrow, the U.S. will publish a new Consumer Price Index (CPI) print. After an aggressive shift in monetary policy from the U.S. Federal Reserve (Fed), market participants expect a decline in this metric.

If the CPI print signals a decline in inflation, the crypto market could see some relief. $18,600 and $22,000 will continue to operate as major support and resistance levels.

Related Reading | Are North Korean IT Remote Workers Targeting Crypto Firms? Here’s What We Know

In addition, analyst Ali Martinez indicated that Bitcoin is sitting at an “important demand wall”. There are 570,000 addresses that purchased BTC around its current levels, to the upside $20,900 is the next level to watch in case of bullish momentum, as seen in the chart below.

Source: IntoTheBlock via Ali Martinez

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Cash & Back Coin (CNBC) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Доступно / Всего 0 CNBC

bitcoin back signs showing cryptocurrency current range

bitcoin back → Результатов: 126


Bitcoin slides off Fed meeting before bouncing back, but what next?

Key Takeaways Federal Reserve hikes 25 bps, Bitcoin drops over 6% Bounceback in prices follow, however, as market bets on rate cuts down the line Bitcoin originally fell to $26,700 and is now back at $27,700 Tight monetary policy appears to be coming to a close, which is exactly what Bitcoin investors want to hear […] The post Bitcoin slides off Fed meeting before bouncing back, but what next? appeared first on CoinJournal.

2023-3-23 17:14


Will Bitcoin bounce back? Why 2022’s pain is different to anything previously

Key Takeaways Bitcoin has closed the year down 64%, its worst year since 2018 This bear market is different, as for the first time ever in Bitcoin’s existence, the wider economy is also pulling back Bitcoin’s correlation with the stock market is extremely high, proving it trades like a high-risk asset Fans will hope this […] The post Will Bitcoin bounce back? Why 2022’s pain is different to anything previously appeared first on CoinJournal.

2023-1-4 15:05