Don’t get excited about Bitcoin’s recovery, it could crash again, analyst warns


Bitcoin ( BTC ) rebounded to close to $50,000 on Dec. 5 as traders continued to assess recent events.

BTC / USD 1 Hour Candle Chart (Bitstamp). Source: TradingView

The data of the Cointelegraph Markets Pro and TradingView followed a less volatile BTC/USD as it rose to $49,777 on Bitstamp before consolidation.

fresh out of a drop to $41,900 in the Early Saturday, the pair stabilized as the market digested what was the latest giant deleveraging event to hit Bitcoin this year.

For some, however, there was every reason to be cautious and not discount another wave of long-term casualties.

“We dived once more. CT loses its temper and sells more. But it’s miraculously bought,” predicted Lex Moskovski, CIO of Moskovski Capital, in part from comments on Bitcoin’s prospects.

“Consolidation, a slow move.”

That slowdown now has no shortage of significant support levels to recapture: $50,000 and the $1 trillion market cap zone just above $53,000, as well as several previous all-time levels.

Meanwhile, broker and analyst Rekt Capital considered the 200-day exponential moving average (MME), a support line that has held since August but was breached in Saturday’s decline, as a potential line in the sand.

In late September, when the BTC/USD was last traded at the $42,000 level, it similarly saw a test of the 200EMA, and Rekt Capital noted that the severity of the decline is still small compared to earlier ones in history.

“You survived the Bear Market of -84.5% BTC. You survived the -63% $ BTC crash in March 2020. You survived the -53% BTC crash in May 2021. You will survive this crash too.” , added .

Enough unloading?

A look at the status quo in derivatives markets showed financing fees neutral or slightly negative at the time of this writing, a marked difference from just a few days ago.

Related: Ethereum acts as a ‘hedge’ in the fall of Bitcoin prices when the ETH/BTC hits a 3-year high

A significant portion of open futures contracts were eliminated during deleveraging, and more than $2.5 billion in cryptographic accounts were liquidated.

The question for commentators now was whether enough of the foam had been removed to ensure a steady return to growth.

The weekly close, however, looked set to be Bitcoin’s lowest since early October.

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Thomas Miles

Cryptocurrency is the most recently discovered currency which will be likely at the help of modernization across the next few decades. With a limited control from the government, the crypto market is independent of many features of a sound market as we know it. Thomas brings these stories to us by weaving them into articles of general importance to all those looking at the fluctuations in the market, or new entries. Thomas is also the founder of Bulletin Bits and is an excellent leader. His leadership is the kind that makes him the most knowledgeable and experienced on the team. His wonderful work ethic and attitude are worthy of imitation!

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