After Bitcoin (BTC) fell to a low of around $17,600 over the weekend, the carnage in the market seems to be showing signs of slowing down slightly. It started a rapid rebound from Sunday afternoon, and successfully stood on the evening of yesterday and the early morning of this (20) day. At the $20,000 mark, it peaked at $20,683 earlier and is still oscillating at $20,000, up 7.9% within 24 hours.
The rise in ether (ETH) was even stronger, approaching $1,160 earlier, before closing at $1,122, up 11.2% in 24 hours. According to CoinMarketCap data, the overall cryptocurrency market value has also recovered to $900 billion. Among the other top 10 tokens by market value, the declines in the past 24 hours are as follows:
BNB: up 8.1%
ADA: up 4.3%
XRP: up 5.2%
SOL: up 6.4%
DOGE: up 11.34%
After Bitcoin rallied and led other cryptocurrencies higher, while there are voices in the market that this is the low point for entry; some analysts warn that the respite may be short-lived.
According to an earlier report by BusinessStandard, Fairlead Strategies founder Katie Stockton said: Bitcoin fell below the technical analysis support level of $18,300, increasing the risk of a further test of $13,900. As for the current rebound, Stockton does not recommend that everyone Buying the dip currently: A short-term counter-trend technical analysis signal provides some hope for a near-term rebound; however, the current overall trend is still strongly negative.
Nobel Laureate Paul Krugman: Recent Rally Rebounds for Dead Cats
Also holding a similar view to Stockton is Nobel Laureate in Economics Paul Krugman, who tweeted earlier yesterday (19) that the current rally may just be a dead cat bounce. He said judging from historical data during bear markets, cryptocurrencies and other assets typically see brief rallies before prices resume their downtrend.
However, netizens also posted data to slap him in the face of his previous predictions about Bitcoin many times. After all, Krugman has never been optimistic about the development of cryptocurrencies before. In early January this year, he wrote that cryptocurrencies may become a new subprime mortgage crisis.
Peter Brandt: Bitcoin price won’t hit new highs until 2024
As for how long this decline will last, or when will the next bull come? According to an earlier report by Zycrypto, Peter Brandt, a veteran trader who has successfully predicted Bitcoin’s 17-year bear market, said that the price of Bitcoin will not reach a new high until 2024, when BTC will be in a huge upward trend. The average duration of a crypto winter is 4 years.
Analysts also judged that 80-84% is the classic retracement target of the bear market from historical prices, so it is expected that the potential bottom of BTC in this round of bear market will extend to $14,000 to $11,000, which is equivalent to 80% of the previous historical high ($69,000) ~ 84% retracement.
At this time, many investors also turned their attention to the mining machine market, and gradually increased their positions and entered the market by investing in mining machines.
Post time: Aug-09-2022