Bitcoin and ETH bottoming? Should we trade BITCOIN now?

Bitcoin and ETH bottoming?

Several events occurred in the past 2 days that caused Bitcoin price to suddenly break the support level of 46,000 USD and drop to 41000 USD according to statistics from Tradingview. So what is the real reason for the BTC plunge and is there a chance for BTC to reverse the breakout? Let’s find out with Primexbt trading.

The reason why BTC plunges?

Worried about Fed raising interest rates

The acceptance of BTC by more and more investors makes the crypto market, especially BTC, more in tune with the traditional market, so it is also affected by news that previously belonged only to the economy. macro and true to the traditional financial market.

The spike in bond yields has put pressure on the entire market, both traditional and crypto markets. Investors are preparing for the Fed to raise interest rates. Two days ago in tandem with the crypto drop, the DowJone fell 1.07%, the S&P 500 fell 1.94%, and the Nasdaq recorded its biggest drop since February, losing 3.34%.

It is possible that the crypto market is also affected, the total market capitalization drops by 11% on the day. And the Bitcoin price returned to the $41,000 region. Besides, BTC.D also showed signs of slight increase again.

Understand today, investors predict the Fed will stop printing money and make it more expensive to borrow money to stabilize the economy and control rising inflation. If in the past assets such as Bitcoin have risen in value due to the inflow of new money, then the Fed’s tightening moves will cause investor expectations to reverse. Not only Bitcoin but hot stocks will also be sold off.

Miners in kazakhstan “lost internet”, bitcoin hashrate drops 12%

Suffered a flurry of negative news. Another negative news coming from the Bitcoin mining community in Kazakhstan is that the leading telecommunications provider in Kazakhstan had to “cut off the network” in response to the outrageous actions of protesters complaining about the soaring energy costs in the land. this country.

Reportedly, Kazakhstan’s market share in the cryptocurrency mining industry is 18%. Chinese miners, before the government’s repressive policy in recent years, have tended to look for new lands to exploit and Kazakkhtan was chosen because this is a country with rich oil reserves and extremely high electricity prices. cheap. At the time of the shutdown, the world’s major pools Antpool, Poolin, F2Pool, and Binance Pool saw a significant drop in hashrate.

While Bitcoin and the broader crypto markets are struggling, one popular analyst foresaw the end of this drop.

Where is the bottom of BTC and ETH?

Over the past 48 hours, Bitcoin is down by almost 7% and ETH by more than 8%, reflecting overall market sentiment with total capitalization having dropped 1% during that time.

The digital and traditional asset markets are experiencing massive sell-offs as the US Federal Reserve (Fed) considers raising interest rates.

The market crash was a surprise to many investors because it was preceded by the rather high bullish expectations of most investors. However, analyst Capo believes a bottom is near. He tweeted on January 6:

“Today, I read very negative comments. The bottom is near.”

Analyst Capo points to the price action of altcoins like ADA to support the argument that while prices are very close to the bottom, they have not yet touched it and there is probably another drop to the bottom.

“One of the main reasons why I think the bottom has not yet been reached is because many altcoins like ADA have yet to hit their lows.” Capo said so.

Looking at the native token of the leading smart contract platform Ethereum, Capo also sees ETH falling right on technical analysis before hitting a new all-time high (ATH).

“ETH was really scary and it still is. Be careful and try to catch the dips, as a wick below $3,000 is possible. It’s not time to catch the bottom yet.”

Capo also highlighted the $40,000 range as a critical support for BTC.

“Also, the ALT/BTC pairs look bearish on the lower timeframes, so BTC could hold better on the last leg down. Expected no less than $40,000.”

On the other hand, Capo urges market believers to remain optimistic as the bull market will continue.

“Note: this is not the end of the bull market, but the end of the mini bear market we just had. The price drop is for buying (cautiously)”.

Bitcoin will not fall any lower.

Cryptocurrency analysis firm CryptoQuant also has a similar view and thinks that Bitcoin may be at an inflection point, near a price point where it is unlikely to fall any further.

“The average price drop could indicate that Bitcoin is close to where most drops usually stop.”

CryptoQuant says that the recent price drop from around $52,000 to around $46,000 shows that the leading cryptocurrency is “just at the edge where most drops usually stop.”

According to the analytics firm, Bitcoin spent 68% of the time swinging 40% to 85% lower than ATH – the typical amount of time it takes an asset to max out globally. Maximum reduction is the maximum loss resulting from the moment the asset’s value drops from the ATH to the bottom before reaching the new ATH.

Bitcoin set its latest ATH in November 2021 near $69,000 but is currently trading at $41,647 at press time.

CryptoQuant also notes that the stablecoin supply on exchanges is growing again after a recent decline.

“Our stablecoin chart shows there were fewer stablecoins on exchanges between December 25, 2021 and December 29, 2021. Stablecoin supply continues to increase since December 30, 2021 demonstrating the increasing demand for stablecoins.”

The analysis firm added that the whale activity represents a easing of selling pressure since the start of the year.

“Last but not least, our 30-day average hourly rate of whales shows a bearish bias, demonstrating gradually lower selling pressure since January 2, 2022.”

So is this the bottom of BTC and ETH? The market will recover strongly after this drop. Let’s primexbt analyze the movement of BTC in the next days.

A little bit about us:
Primexbt trading was born a few years ago but it has soon established itself in the financial market. Here, you can trade from cryptocurrencies, forex, commodities and indices… Outstanding advantages of Primexbt trading such as: beautiful interface, easy to use, low fees, leverage for home use. investors make money even when the market is down, complete set of supporting indicator tools, Primexbt convesting technology helps new investors to refer to trades of professional investors, Primexbt turbo technology allows demo investors before entering actual orders……
If you don’t have an account Primexbt
Login or register here

Leave a Reply

Your email address will not be published.