BITCOIN NEEDS TIME TO REPAIR SERIOUS DAMAGE
According to a report released yesterday by Fundstrat, technical data on the price of bitcoins are not in good shape, although cryptocurrency has since grown more than 13%. However, the oldest cryptocurrency is still 36% below its high in February. Levels and above $ 10,300.
The recent catastrophe caused by the sharp downturn in traditional markets forced Bitcoin to fall below its five-year high. Rob Slumer, a technical analyst at Fundstrat, says the price was severely damaged.
For now, technically we will again give Bitcoin the benefit of the doubt that it is attempting to bottom but recognize Bitcoin will likely need months of consolidation to repair the technical damage now in place,
The crypto breakdown over the past week mirrored the ‘get me out of everything’ panic that dominated all asset classes, whether they were defensive (bonds and gold) or not (equities). Lower highs and lower lows are in place for Bitcoin, leaving in a compromised, potentially vulnerable longer-term profile.
After all, the situation is not so bad. The cryptocurrency was able to stay above the 200-week moving average. According to an analyst at Fundstrat, this is a necessary level of long-term support for most assets. This worked for Bitcoin during similar crashes in 2015 and 2018.
RECOVERY HAS ALREADY STARTED CONFIDENTLY
Bitcoin is already showing clear signs that it wants to solve the problem. Cryptocurrency began to move independently of traditional assets on Wednesday as the latter tested new lows. The digital coin has remained stable for more than a week, after rising above 20% on Thursday, the highest single-day gain since October last year. On Friday, Bitcoin extended the rally to $ 6838.
When Bitcoin was trading for just over $ 6,000, Vijay Aiyar, senior executive director of the Luno cryptocurrency exchange, told Bloomberg that digital currency could reach $ 6,500, and then find a range of $ 3,000 to $ 6,000 when the market draws near. half the event. He said:
This is classic redistribution and would be very healthy for future Bitcoin price action and if we were to have bullish momentum going forward.