Does the downtrend is over, or is it just another Bitcoin price pump before a large drop?
Bitcoin market capitalization has increased by $100 billion in just one night only. The capitalization increase was followed by 12.5% growth at the highest point of the day. But in the face of today’s rally, there are still mixed opinions about the upcoming situation of Bitcoin price.
Bloomberg analytics explains why Bitcoin price has the potential to reach the $44,000 soon
The rapid rise in price and growth in capitalization may have happened because, as AZCoin News reported, the Amazon rumor. However, but the most popular assumption is the short squeeze that happened due to the high amount of shorts that bears have opened after a recent $32,000 price drop.
According to the Bloomberg analysis team, Bitcoin’s rise to this high confirms a classic double-bottom pattern. This could lead BTC up to $44,000. The resistance may be waiting at the $41,000-$42,000.
Crypto is a tulip bulb with no inherent worth
Meanwhile, Man Group CEO, investing veteran Luke Ellis, thinks cryptocurrencies are worthless. But they offer holders great trading opportunities. Ellis rejects the intrinsic value of cryptocurrencies. To him, the entire crypto market looks like “tulip bulbs”.
Much of the crypto market action involves participants that doubt their ultimate utility, according to the chief executive of the world’s largest listed hedge fund manager https://t.co/SSth2tF72n pic.twitter.com/g1U5K6G6yd
— Financial Times (@FinancialTimes) July 26, 2021
And economist Nouriel Roubini also agrees with Ellis.
Ellis noticed that the vast majority of investors involved in cryptocurrencies markets fully understand that these coins are valueless in terms of “ultimate” utility. At the same time, Ellis and his team acknowledge that cryptocurrencies empower traders with lucrative trading opportunities arising from the extreme price volatility of crypto. For the Man Group CEO, crypto is just a thing to trade.
In short, it is because of Bitcoin’s huge price fluctuations that a lot of people still can’t believe it. Right now, market participants are thinking about which way to move Bitcoin. If the price goes above $38,700 and stays there for a while, Bitcoin’s downtrend movement that began in May will be considered over.
At the time of writing, Bitcoin Dominance has been staying around values of 47.1%. But we cannot say the same about the Bitcoin trading volume, which has increased by 76% with $38 million in the past 24 hours. The average volume before the recent price increase stayed around $20 million per day.
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