Here is why Bitcoin price decline could be steady and keep increasing, don’t rush to buy yet
After hitting a level below $30,000, Bitcoin price once again moved back above that level to secure its key support. At press time, BTC’s price is up nearly 4% at $30,837 and the market cap is at $578 billion. This comes just hours before one of the most anticipated events in the space scheduled to occur later today.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin rebounds after going full circle in 2021 to almost — but not quite — hit its Jan. 1 opening price
Bitcoin and cryptocurrency prices have swung wildly over the last couple of days, with BTC dipping under $30,000 before bouncing back. The ₿ Word, described as a “Bitcoin focused initiative that aims to explain how institutions can embrace Bitcoin,” will see Elon Musk getting back at the table. He will talk about the asset with Twitter’s CEO Jack Dorsey and Ark Investment’s Cathie Wood.
However, whether BTC has bottomed or not is still a major topic of discussion. If Bitcoin rebounds this week, it means the sell-off is temporary. The secondary support is at $27,000, above which the long-term trend remains intact.
Founder of training & trading group Crypto-TA.nl shared his forecast feeling, arguing that the time for a real recovery is yet to come.
“EW labelling was spot on so far. Need to see how this bounce unfolds but should be a corrective bounce before more doom. Always expect the unexpected so we determined levels where this is invalidated and we turn bull. Just not yet.”
Although BTC has recovered a bit, Gold bug Peter Schiff, however, has already put a bearish spin on the recent bounce. In a recent tweet, he stated that the $30,000 has now turned into resistance. Bitcoin rallies above this level may be short-lived.
Source: Peter Schiff/Twitter
$30,000 may be the new $40,000, with moves above this key level just fake break-outs to sucker in more buyers.
Meanwhile, a veteran commodity trader and analyst Peter Brandt also shared a Renko chart regarding the leading cryptocurrency. This Japan-originated chart shows that the rising trend for BTC stopped at the peak in April – the $64,863 reached on April 14 – and the chart has been negative since then.
As shown for Bitcoin, the trend from $6,000s to $60,000s was steady. So has been the decline since April | Source: Peter Brandt/Twitter
According to CryptoQuant, things don’t look right for Bitcoin. The company shared a chart showing that Bitcoin spot reserves on exchanges are increasing. Derivative reserves are decreasing, which signifies that profit-taking is occurring. Stablecoin reserves are also increasing.
However, the number of stablecoins on exchanges remains close to recent all-time highs. As there is still a lot of liquidity on exchanges, it could be waiting to be deployed into Bitcoin in the mid- or long term. If there was a bear market, these stablecoins would be withdrawn.
But the director of Digital Assets at asset manager VanEck, Gabor Gurbacs, also believes that Bitcoin is doing well, even after losing more than 50% of its all-time high in April. He claims that since the beginning of 2020, when the Coronavirus pandemic started, Bitcoin has risen from $3,000, reaching a whopping $65,000 this year. In this context, the $30,000 price for Bitcoin is a positive sign.
Gurbacs doesn’t believe that Bitcoin is currently correcting, he thinks BTC has managed to rise above itself. According to him, institutions may be waiting for the $25,000 range to return to the market.
At the moment, according to Whale Alert, there are a lot of stablecoins being transferred from exchanges to wallets. This may be because the buying power is decreasing, investors are looking to preserve the balance.
Source: Whale Alert
As Bitcoin continues its downtrend, institutional players have been buying at every dip. On Monday, Cathie Wood’s Ark Invest purchased 300K shares of the Grayscale Bitcoin Trust (GBTC). In the last quarter, Rothschild added 100K shares of GBTC.
Altcoins welcomed the Bitcoin rally, ETH price reacted positively after the drop and added more than $100 in value. Therefore, ETH is currently standing above $1,870. Binance Coin also saw multi-week lows, but an 8% gain took the asset to $280. On the 24-hour scale, all larger-cap altcoins are also in green. The total cryptocurrency market cap returned above $1.252 trillion.
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