The evolution of the price of Bitcoin (BTC) and the recent increase in its volatility have shaken the cryptocurrency market as expected by traders and analysts.
After Bitcoin price fell to $15,580, some were expecting a quick recovery from the deepest lows it made last week. Others predict further difficulties for investors. In recent weeks, analysts have closely followed the evolution of the asset’s price to anticipate whether it was appropriate to go short (or sell) on the market or adopt a long position (buy).
The past week has been a tricky one for BTC price, as the asset has been trading in the red very often, with worrying daily charts, including one showing its lowest price in two years. Even if Bitcoin avoided a major crash, it’s hard to say with certainty that the worst is already behind us.
At the time of this article’s layout, Bitcoin was trading at $16,753, gaining 1.45% on the day. However, the asset is still down 15% on the weekly charts. The BTC action therefore continues to keep traders on edge, with some analysts questioning whether it is time to go long in the cryptocurrency.
Optimistic analysts for Bitcoin
Analyst OnChainCollege recently told his 52,800 followers that the price of Bitcoin has nearly bottomed out.
Looking at the supply of bitcoin in profit, he said that if you mine coins that have not moved for over 10 years, the percentage of supply in profit has recently reached historic lows. Currently, 32.73% of the supply is in profit, which is lower than any previous bear market.
According to this data, the analyst predicts that if the lows occur when it is most painful, the bottom of BTC would be very close.
Another analyst, Tommy Thornton, said in a tweet that while there are still massive counterparty and liquidation risks, Bitcoin looks close to bottoming out.
Pseudonymous analyst Checkmate, for its part, posted a message on Twitter stating that Bitcoin’s dominance was at 59% and continuing to rise. Therefore, there are many expectations regarding the long-term appreciation of the asset.
While some analysts have painted a relatively bullish picture for BTC, others have taken a completely different position.
Analysts advise against increasing exposure
Analyst Will Clemente told his Twitter followers that more problems can be expected.
In addition to sharing a chart on market psychology, Clemente said that at the rate things are going this year, it looks like we’re hitting a wall. Therefore, an open long position in BTC could only lead to negative returns.
Analyst Abramchart, of CryptoQuant, pointed out that cryptocurrency miners are still marked by a negative outlook. The analyst points out that miners are currently selling on every hike. Yesterday, after yet another asset correction, the market saw an influx of coins from Bitcoin miners.
It seems that in the short term, miners have a negative outlook. Generally the trend they mark influences the market, and it is not advisable to counter it.
So, it seems that for now, analysts are mixed about Bitcoin and the cryptocurrency market, more so when it comes to anticipating the direction of the latter.
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