There’s no denying that the cryptocurrency market is suffering, but its rebound from the massive decline has made it easier for crypto optimists to keep their moods up. The market capitalization, which was about to hit the 2.5 trillion mark, remained below and was 1.4 trillion at the time of going to press. While some felt that Bitcoin was at its peak and that the best course of action is to simply reduce losses and sell, others held their positions.
While last week was one of the worst months for cryptocurrencies, as the market cap rose 20%. The price of the royal coin also rebounded satisfactorily, but its sheer volatility kept everyone in suspense. After all, volatility is the name of the game.
In the midst of all the price movements, market corrections and the excitement about the “bubble about to burst”, the analyst and trader Willy Woo saw the situation differently. In one new podcast, moderator Peter McCormack pointed out that so much is happening in the market. With China’s ban on Bitcoin mining and El Salvador making Bitcoin legal tender, it’s like “two opposing forces at the same time”. The analyst said:
“Even that’s bullish, that’s great! The entire network has become more decentralized, we don’t have 60% miners in China and China cannot take control of the network. Now the concerns that China will take over Bitcoin with a 51% attack are gone. That, plus witnessing something like El Salvador making bitcoin legal tender, is like bitcoin battling the final boss in a video game. BTC faces the central banks and that happens much earlier than we thought. “
In terms of corrections, a few events led to the demise of Bitcoin. This ranged from Elon Musk’s Bitcoin Energy FUD, China’s raid on the mining industry, and recent news of the Death Cross looming over BTC price movements. In response, Woo drew interesting parallels between Tesla and Bitcoin. He said:
“There was a time when Tesla was the favorite of the short-lived on Wall Street, and there was one hit after another over Elon Musk and Tesla. I have the feeling that this is happening with Bitcoin right now.
Looking at the price of BTC, it seems like the king coin is still in no man’s land. His recent attempts to climb above the $ 40,000 mark were foiled and fell after testing this resistance. However, the signs of a bullish rebound on the one-day chart as the asset rose 11.8% in just three days cannot be ignored. If BTC’s price breaks the 40,000 resistance, a marked bullish rebound can be expected.
Commenting on the recent sell-offs, Woo explained that “money was once” tossed in the market by hedge funds and corporations “and is now being reabsorbed by long-term owners and newer investors. This can also be done by looking at. to be watched Bitcoin Unit Net Growth which is still high. There are a healthy number of new users joining the Bitcoin network, which was not noticed in previous bear markets.
According to Woo, the market is moving sideways, “right now it’s bearish, similar to Wyckoff accumulation”. The $ 28-29,000 was the final test on the current pattern and the analyst believed the market rebounded as on-chain analysis turned bullish.
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