A dangerous bearish rebound in the price of Bitcoin. Prices are once again close to the critical threshold in the $30,000 region
A terrifying weekend for bitcoin, and more generally, for all cryptocurrencies. Over the weekend, bitcoin dropped to $33,350 before rising, though not much, above $33,500. Compared to the highs reached in Thursday’s session ($40,000 region), Bitcoin value today It’s as low as 16 percent as can be seen from the real-time graph below.
If today’s session also closed down, then Bitcoin consecutive negative sessions Will go up to 5!
These numbers inevitably lead to the hypothesis that the current (deep and permanent) downturn can be exploited for Buy bitcoin at a discount. In fact, traders who, until the middle of last week, did not want to open bullish positions on Bitcoin, could take advantage of the crash that occurred over the weekend to buy at lower prices, and thus aim for a subsequent re-price.
In theory, such an approach is legitimate and justified. Among other things, it can also be done today Cryptocurrency trading Also starting with free practice using a demo account like the one offered by Plus500 broker. This platform offers, in fact, 50 thousand virtual euros to learn how to buy and sell BTCUSD CFDs without the risk of losing real money.
However, the discussion about the possibility of exploiting the Bitcoin crash to buy at a discount cannot be separated from a careful analysis of the reference context. This is exactly what we will do in the next paragraph.
Why did bitcoin collapse?
On niche sites, whenever Bitcoin records a significant decline, the decline tends to this or that specific news, ending up losing sight of the general situation. From our point of view, there are no specific reasons why Bitcoin crashed over the weekend. The selling is just one manifestation of the general climate of risk aversion that characterizes the markets.
In short, it is necessary to take note of this Bitcoin is not immune to the strong uncertainty that characterizes exchanges today (There are those who openly talk about the bear market) but they are affected by it like all other assets. In the past week, Wall Street stock market indices have plummeted and so has Bitcoin.
Those who thought the symbiosis between Nasdaq and Bitcoin had failed, found the weekend’s crash a surprising return to reality. Indeed, how can Bitcoin remain immune to the current stage of the markets if Thursday’s session of Dow Jones ends with a drop of 1,000 points and if the Nasdaq index collapses on Thursday by as much as 5% (wider daily discount from 2020)?
Buying Bitcoin Now Is It Worth It? artistic frame
Technical analysis can be very helpful in understanding whether or not this is an opportunity to buy Bitcoin at a discount. As it stands now, the January 24th 2022 low of BTC price at $32,980 represents the next potential support visible on the daily chart. If this level is cleared, then for the cryptocurrency with a higher market capitalization, the way will be opened for a return to the $30K level.
One data above all needs to be taken into consideration: the BTC/USD cross is currently down as much as 50 percent compared to the high reached last November. It seemed that eternity had passed from that moment on.
The situation is still developing but this could favor operations. However, it is necessary to use full brokers to operate. An example is eToro, the multifunctional trading platform that allows you to work in a 360-degree angle on BTC.
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