Is Bitcoin nearing the end of its downtrend?
Although there are signs that Bitcoin is reaching the end of the current downtrend, some experts say that until there is another big drop in the price trend of this digital currency, the price floor can not be confirmed.
To Report Quinn Desk, although the price of Bitcoin fell to the bottom of $ 29,200 yesterday, the one-day candle closed at the level of $ 31,100 with the price jumping throughout the day. Bitcoin has experienced a lot of fluctuations in recent days, and cross-jumps have been very limited so far due to the inactivity of some buyers.
The performance of market coins, however, varied from currency to currency yesterday. For example, China Link experienced an 11 percent jump during this period, and Internet PCs and Solana fell 3.5 and 2 percent, respectively. The return of bitcoin in the last 24 hours has been about 2.3 percent.
The sentiment of digital currency traders continues to decline, while analysts and some capital management experts are looking for the bitcoin price floor and expect that after the price reaches it, with the market recovering, part of the losses of the previous months. Investors be compensated.
Two Prime Investment Institute has said about the current situation of the digital currency market:
In any price cycle I see, the best time to accumulate new units is during downtrends, and when the uptrend resumes, the returns on these investments increase exponentially.
Experts at To Prime expect their portfolio to emerge from the recession as Bitcoin and Atrium prices return above $ 33,000 and $ 2,200; Levels that are 10 to 20% higher than current prices.
To Prime’s Digital Asset Investment Fund, which also uses digital currency derivatives trades to increase its return on investment and risk coverage, may have recorded a negative return of 31.4% for May, largely due to poor performance. Atrium and altquins like Solana are in this time period. As you probably know, during downtrends, altcoins usually experience more price reductions because of the higher investment risk than bitcoins.
Find the price floor of the current bitcoin cycle
Many indicators indicate that bitcoin is moving towards the middle or end of its downtrend. For example, the Realized Price Index, which measures the average purchase price of all Bitcoin circulating units, is now at $ 23.600. Some analysts see this level as a key support that could determine the price floor of the current bitcoin downtrend.
The Glassnode analytics platform wrote in one of its new articles:
The cost-based price index, or the price realized in the past, has repeatedly acted as support for downtrends, and in 84.9% of Bitcoin trading days, the price candle has closed somewhere higher than this index. In other words, since the start of Bitcoin trading, in only 15.1% of trading days, the price candle has closed somewhere lower than the realized price index.
To confirm the price cycle of the current cycle, the price of Bitcoin needs to return to the upside after falling below the realized price index; Just like what happened at the end of the previous downtrends. Now that the price has not yet fallen below this index, it can be said that those investors who want to sell have not yet completely left the market.
Alex Kuptsikevich, an analyst at FxPro, says:
The Bitcoin downtrend is not over yet, although its price has left a significant portion of its downtrend. However, rumors are now circulating in the market that short-term bitcoin buyers have already left the market and started selling.
According to Kopetskovic, the bullish market starts from the point where medium-term investors and even some long-term holders sell their assets; Eventually, when prices reach lower levels, they re-attract some buyers to the market. The analyst says the market is unlikely to be able to enter this stage before reaching the 2017 price record ($ 19,800).