Bitcoin has increased in value by 5.15% during past 24 hours
According to data from CoinMarketCap, the value of Bitcoin has increased by 5.15% in the past 24 hours to trade at $20,776. Industry players cite an improving macro picture, certain trading patterns, and more shakeouts or “deleveraging” as the three factors that need to align to help Bitcoin and the cryptocurrency market reach the top. bottom.
An improving macroeconomic outlook
A brighter macroeconomic outlook, particularly indications that the economy and inflation are “coming under control,” may aid in the bottoming out of the cryptocurrency market.
“If we see signs of that this month or even over the next few months, that would give the market more confidence that there is a bottom for all risk assets, including stocks and crypto,” Vijay Ayyar of crypto exchange Luno told CNBC. .
According to James Butterfill, head of research at CoinShares, a “softer” Fed and a stronger U.S. dollar might assist the market in finding a bottom. He thinks this is likely to happen at the Jackson Hole meeting at the end of the summer.
Additional “Discovery”
Most people in the cryptocurrency industry have differing opinions on whether the recent market “upheaval” or “deleveraging” has reached its conclusion.
According to CK Zheng, co-founder of ZX Squared, the market may be able to reach a bottom when there are no more unexpected company failures.
James Butterfill, however, is of the view that Bitcoin miners could be the next victims of the washout, stating, “A collapse of either of these mining startups or the associated lender is likely and would help define a bottom in the market. cryptography.”
Capitulation and accumulation trading patterns
Certain trading patterns could signal a market bottom, such as a “capitulation candle,” as witnessed in March 2020. Here, the price of Bitcoin might plummet much further and “wipe out the few remaining weak hands” before “going back up strongly.”
A second pattern could be an “accumulation phase”, in which Bitcoin bottoms out and trades in a range for a few months before rising. In all scenarios, analysts expect the price of Bitcoin to decline to between $13,000 and $15,000, a reduction of almost 30% from its current levels.
