Bitcoin recovered above $16,000 within the early hours of Monday after hitting $15,600 on Sunday. With the continued development above $16,000, it is beginning to appear like the digital asset is lastly on a path to restoration however this is not the case. The restoration solely reveals a short lived stoppage in what is a steady bleed as momentum continues to drop throughout the house.
This Is Not The Bitcoin Bottom
The bitcoin backside is nonetheless extremely debated even now. When the digital asset had hit its earlier cycle low of $17,600 after which ranged above $20,000 for a very long time, there have been speculations that the underside was lastly in however historic information mentioned in any other case, which turned out to be true.
Now, bitcoin has already reached a brand new cycle low of $15,500. However, going by the identical historic information, it is unlikely that the bitcoin backside has been marked. Instead, it is extra seemingly for the digital asset to see $15,000 going ahead than one other restoration above $20,000. This is due to the developments that are nonetheless popping out of the house.
BTC value at $16,090 | Source: BTCUSD on TradingView.com
By now, it is now not a secret that the FTX collapse had rubbed off on a whole lot of huge gamers. Where the collapse of the likes of Terra and Celsius had been unhealthy, FTX’s decline carries worse implications for the crypto market. Add in the truth that the crypto change was hacked for greater than $300 million and the hacker is now dumping the tokens, and there is no means that BTC has seen its backside but.
There is additionally little to no assist at $16,000 for the digital asset even presently. It stays a vendor’s market, which signifies that the bears stay in management. There is additionally important resistance on the $16,500 degree, and with the low momentum available in the market, a take a look at of this space is unlikely.
Investors are additionally pulling their cash out of centralized exchanges in document numbers, with $5.5 billion in BTC flowing out of exchanges in the last week, in accordance to information from Glassnode. Investors are additionally cautious of the market presently, which suggests there will probably be no new liquidity coming into the marketplace for some time.
Historical developments place the bitcoin backside someplace round $12,000-$13,000, so one other 20% may very well be in the way forward for BTC earlier than it registers an enduring backside.
Featured picture from TronWeekly, chart from TradingView.com
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