Bitcoin Price Recovers Above $19,000, But Is The Onslaught Over?
21 September 2022 - 1:00AM
NEWSBTC
Bitcoin has been able to regain some of its footings over the last
24 hours after it had fallen to the $18,000 level, taking the
entire crypto market down with it. Now, as the Tuesday trading day
opens, the digital asset has made its way above $19,000. But
despite bitcoin looking to be forming support just above $19,200,
questions still abound in the market if this is a false recovery.
Is The Onslaught Over? Bitcoin’s move above $19,000 has been a 4%
increase over the past 24 hours. Given the tendency of the market
to form a takeout after such massive losses, the possibility that
the downtrend is not over continues to loom over the market.
Related Reading: More Than 125,000 Crypto Traders Liquidated,
Here’s How Much They Lost However, in the one-week timeframe, the
digital asset continues to point towards sell pressure. It is the
same thing recorded in the 2020 market just before the bull rally.
But it is important to note that the digital asset had gone through
a full-blown bear market at that point, priming it for recovery.
This time around, bitcoin is still just entering its bear market
phase, meaning that any buying pressure will not lead to
significant growth. It was the case in the month of August, where
even though accumulation trends had grown, bitcoin was still unable
to break above $25,000. BTC settles above $19,200 | Source: BTCUSD
on TradingView.com The market movements do point to the possibility
of bitcoin forming a cycle bottom, which would mean that the buying
pressure could be an indicator of a bull rally. But the market
remains too volatile for a significant upwards swing. Bitcoin In
The Weeds There is still a lot of strong sentiment surrounding the
fact that bitcoin has yet to reach its bottom. Most of these
analyses are taken from previous bull and bear cycle trends where
the digital asset had lost at least 80% of its value before
starting on another bull market trend. Putting the bottom of the
current bear market around the $12,000 price point. Related
Reading: Cardano (ADA) Price Fails To Break $0.5 Despite Vasil Hype
Chief Market Strategist at InTheMoneyStocks.com, Gareth Soloway,
has also echoed this forecast. In a recent interview with
Stansberry Research, Soloway explained that he expected the price
of the digital asset to drop between $12,000-$13,000 before the
bear market is over. The market strategist points to the dollar’s
strength in recent times, which chases investors away from risk
assets. “Every uptick in the dollar, you’ll see the opposite
occurring in the Bitcoin chart,” Soloway said. Bitcoin’s
price had dropped by about 85% from its all-time high after the
last bull market of 2017-2018. It was a similar case after the
2013-2014 bull market. So given bitcoin’s likelihood to stick
closely to historical patterns, Soloway’s prediction of a
$12,000-$13,000 bottom price remains a viable forecast as it would
constitute an around 85% drop from bitcoin’s all-time high of
$69,000. Featured image from CNBC, chart from TradingView.com
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