- Bitcoin managed a weak recovery and the BTC price remains in a sideways movement.
- At the same time, Ethereum and various altcoins were able to record a significant price increase.
- There is a risk that this is only a temporary effect and not soil formation.
Bitcoin is showing weakness, while altcoins and tokens have managed to make up some ground this week. But the impression of a recovery is deceptive, because without a strong signal from the Bitcoin, the “alts” are also on shaky feet.
Although it has been possible to recapture the 20,000 US dollar mark, that alone is not enough to be able to speak of a bottoming out. At the same time, however, Bitcoin has not yet experienced a real bear market rally since the massive price slump. And this circumstance could provide exciting developments in the coming week.
The constant that makes it stand out is the close correlation with the stock market, because here, too, a more positive picture emerged this week. So if it stays that way and especially the tech and US stocks should continue to recover, then this probably also applies to Bitcoin.
What speaks for a bear market rally?
If the bulls can start properly next week, one should be particularly attentive when reaching the mark of 25.5000 US dollars and 28.500 US dollars. Because here are two possible resistances that invite you to either take profits from long positions or offer yourself for the bears to build up short positions.
For a bear market rally, Bitcoin has fallen below the 200 MA line on the weekly chart. Historically, this marked the bottom of the last two bear markets. The RSI is also at a historic low.
What speaks for a continuation of the bearish trend?
The current situation suggests that the sale could come to an end, but equally it is not only the technical market data that should be paid attention to. Because the debacle around Celsius, the crash of Terra and the decline of Three Arrows Capital cast a long shadow.
The miners also seem to be challenged by the overall situation. It is probably ongoing loans that could pose a risk for you. Therefore, it could be tight even for larger companies. Initial sales, such as in the case of bitfarms, have already taken place to secure liquidity. Equally, however, the hashrate remains relatively stable. Either the worst is yet to come or the miner capitulation will result in sell-offs, but no bankruptcies.
Even with BlockFi and Voyager Digital, it seems that the last word has not yet been spoken. All in all, there are still many risks left that could bring the course to its knees again. In addition to the difficulties of the crypto market, there is the problem of inflation and the dilemma of central banks. So you can identify many internal and external risks that could lead to further sales.
The articles published on our website reflect the personal opinion of the editors and their personal assessment of the market situation. They do not constitute investment advice or recommendations. All publications are for information purposes only. They are not adapted to your individual situation and cannot and should not replace personal and qualified investment advice with qualified advisors. Trading cryptocurrencies is always a risk. If you use the information offered here or follow advice, you act on your own responsibility.
