TOPICS IN THIS BITCOIN ANALYSIS
- A wave of panic in the cryptocurrency sector
- BTC/USD: support at $30,000 resists selling pressure
A wave of panic in the cryptocurrency sector
The entire crypto market has been shaken in recent days by the fall of the TerraUSD, a stablecoin whose value is linked to the US dollar. Gold l‘USDT broke the parity threshold with the greenback this week, a mechanism supposed to ensure its stability having not withstood exceptionally strong selling pressure.
Ratings agency Fitch said in a statement that there could be “significant negative repercussions” for cryptocurrencies and digital finance if investors lose faith in stablecoins.
Furthermore, theare cryptocurrencies were also swept away by widespread selling of risky investments, due to concerns about high inflation and rising interest rates.
Bitcoin in daily data
BTC/USD: support at $30,000 resists selling pressure
On the graphic side, Ie Bitcoin likes to play scare. The brief foray below 30,000 dollars raised fears among investors, however, everything leads us to believe that it is a “bear trap”.
First, Thursday’s session was characterized by a long low wick, indicating excess bearishness and a hunt for Stop Loss in an effort to claw back liquidity. Then, the RSI indicator forms a bullish divergence, suggesting a market bottom and potentially the start of a bullish recovery.
Finally, buyers will recover if the candle of the day close-above $30,000. We could also have a bullish reversal candlestick on this key level: a morning star doji.
Therefore, technical analysis argues for a rebound in the coming days. It is still early to say that Bitcoin has marked a long-term market bottom. Nevertheless, the market has the capacity to rebound towards 34,000 dollars then 37,000 dollars.
Twitter @Joris Zanna
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