cryptocurrency

Has the bitcoin downtrend faded?

Author: Ahura Chalki

Friday, 03 June 2022 Number of words: 274 Study time: 2 Minutes Views: 318

BTC price analysis
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In the previous Bitcoin analysis, we talked about the reasons for the BTC price down to 14,000 USD. As I mentioned in that article, technically, we need to see a robust daily close under 29,000 USD; otherwise, we can not count that much on the bears. 

Still waiting to see the solid daily close under 29,000

General conditions have not changed yet. Still, we have the stagflation risk on the one hand and growing geopolitical risk on the other hand. Peace talks between Ukraine and Russia did not have a significant result. European finally reached a consensus on a Russian oil embargo that should take effect next year; this is while international requests from Russia to allow Ukrainian wheat to be exported have also failed. 

In the stock markets, we had some signals that central banks may slow down their tightening policies because of recession fear. This overall positive outlook helped the leading indices to pause their downtrend and even recover some of their losses. The same reaction we saw in the cryptocurrency market.

Since the main downtrend reasons were the same between the crypto and other financial markets, recovery reasons can also be the same and Almost simultaneously. 

Later if we can see the short-term concerns are solved, this price recovery should continue, but to see the prices above the 37,500 USD, where we can say the trend is changed, needs a much stronger reason, maybe ending the war in Ukraine. Otherwise, bears have complete market control as long as it is trading under their essential resistance at 37,500 US dollars. Any strong daily close under 29,000 US dollars will put the 14,000 once again in the spotlight. 

Has the bitcoin downtrend faded?

 

Source: IFC Markets
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