Signs of Bitcoin reaching the price floor after 9 weeks of falling; Is the downtrend over?
With the closing of the ninth Bitcoin downtrend in the weekly view, the market will start a new recovery wave and technical indicators will partially confirm the end of the downtrend for the short term. However, some experts are still not sure if Bitcoin will reach the price floor.
To Report Bitcoin Desk, Bitcoin has grown 6% in the last 24 hours, reaching over $ 30,000. The show has seemed a bit unfocused in recent episodes, however;
This is the first time in the history of this digital currency that the weekly candle closes for 9 consecutive weeks without any growth; That brought the price down from $ 48,160 to last week’s high of $ 29,600. The crash comes amid growing concerns about rising inflation around the world, with investors preferring to avoid high-risk investment assets, specifically digital currencies.
As the charts show, Bitcoin has strong support at the $ 29,000 level; A surface that has been tested many times in recent weeks. If Kendall closed below $ 29,000 this week, it would mean that the price of Bitcoin could fall to a record high of $ 20,000 by 2017. The $ 30,500 resistance is still seen on the chart, and the closing of the daily candle above this level could be a strong sign for the recovery of the bitcoin price in the coming days.
The Relative Strength Index (RSI), which is used to measure large price movements, has recently recovered from the 30 level in the daily view, indicating that the price of Bitcoin may have bottomed out. Short-term buyers can also accelerate the price upward this week. Meanwhile, data on traders’ sentiment last week suggests that the market may be moving towards higher price levels in the coming weeks.
Some analysts say that in the current situation, investors will carefully monitor price movements before entering the market.
Simon Peters, a market analyst at the eToro platform, said:
US financial markets experienced a slight recovery last week as global stock prices rose. The digital currency market has not recovered as much as the stock market, but the price of bitcoin and some major currencies has remained stable during this period; This shows that big investors have some peace of mind before re-entering the market.
The growth of digital currencies today comes at a time when Asian markets are also booming. The jump in Asian companies’ stock prices is mainly due to the end of corona quarantines in some Chinese cities. Traders expect consumers to spend more money on goods and services as China’s economy reopens; An event that could lead to an increase in the income of Asian companies in the coming weeks and be a sign that the stock prices of companies in the region are reaching the bottom.
As of today, the Asia Dow Stock Exchange Index, which measures the performance of the leading companies in the Asian market, has grown by 2.5% and the Hang Seng Index of the Hong Kong Stock Exchange has grown by 2.06%. In addition, during this period, the Nikkei 225 index of the Japanese Stock Exchange was 2.19 percent, the European indexes of the STOXX Europe 600 and DAX were at least 0.82 percent each, the Nasdaq 100 of the United States 1.44 percent and the S&P500. They have grown by approximately 1.08%.
Some analysts say the recovery in bitcoin prices may take longer than we expect.
Alex Kuptsikevich, senior analyst at FxPro, said:
It is too early to talk about a bullish return until Bitcoin has reached the $ 30,600 level of resistance since mid-May. Increasing the willingness of investors to take risks can also increase the likelihood of a change in market trends. Last week we saw a divergence between the performance of digital currencies and the stock market, and this in a way reflects the weakness of the digital currency market.