The risky assets They are not having their best moment in the markets. Stocks of companies listed on Wall Street for those investors with a greater tolerance for risk are the ones that have had the worst behavior since this new downtrend began in November of last year, as well as Bitcoin And other cryptocurrencies are keeping the pulse low.
It’s exactly A unique digital asset that gets the most attention In the past few days, it has been reported by many market agents when trading at a level that is absolutely key to its future, as indicated by some experts. The environmental coding system He faces a difficult choice as to whether the current levels are attractive over the long term, or whether the biggest declines will simply come.
20,000 dollars from Bitcoin appears to have emerged as an obvious reference in recent months. This is the lowest level since mid-July and on which a lot of attention is focused. “Bitcoin is stable and its price is still hovering around 20,000, which indicates that the bulls are doing their best to maintain the level,” Naim Aslam, an analyst with the broker, wrote in a note. AvaTrade.
The latest move for crypto assets can be attributed to the letters of the Federal Reserve Chairman, yIrum Powellwhich he mentioned in a speech given in jackson hole The central bank will not stop raising interest rates until inflation is under complete control. Then Bitcoin dropped from $22,000.
“with the The stock market is clearly leading the way for Bitcoin and other cryptocurrencies this yearIt’s dangerous to consider only technical levels when evaluating its price, Schei says. The analyst is looking at the next major support levels on a weekly basis.”16,000, or even between $12,000 and $11,000”. However, on the positive side, bitcoin is still trading above its 2017 peak, and the 2017 high now appears to act as a strong support level.
Technical analysis is inconclusive
The largest cryptocurrency is listed in The bottom of the range is between $20,000 and $25,000, a situation that shows the weakness the cryptocurrency has faced since mid-June, when the biggest selloff of the last quarter occurred. This is something that, for many, reflects how vulnerable he can be in the coming months.
“The Short-term weakness continues to haunt many Bitcoin fundamentals With lower prices,” analysts from the cryptomarkets team write in a note. glass knot. This underscores the difficult choice that cryptocurrency investors are now facing. “Bitcoin is closely related to risk assetsThese experts say the specter of a permanent economic crisis, three to four quarters, still lingers under the eyes of the hurricane.
Active It continues to trade below the 200-week moving average, A historical technical level that has only fallen below a handful of occasions, including bear markets in 2015, 2018/2019 and at the height of Covid,” add these analysts regarding the technical perspective of the crypto asset.
“Buying below this well-known technical indicator has been a profitable strategy throughout history”explained in a recent report Bendik Norheim Schei, Head of Analytics at Arcane Crypto Company. Schei highlights how Bitcoin hasn’t traded that much lower for about two months. “We’ve never seen this before…so it’s definitely a bearish technical signal,” he warns.
In the past years, Bitcoin and other cryptocurrencies have acted as uncorrelated assets, including… A downward blow to the stock market. exactly the contrary, That has changed considerably since the influx of institutional money and the rise of professional traders in the wake of Bitcoin’s latest bull run, which began in late 2020.
Cryptocurrencies now tend to trade close to other risk-sensitive assets, such as company stocks, often after the volatility of the S indices.& P 500 or Nasdaq Composite. That reliance on historical data, such as buying below the 200-week moving average, may make it “less reliable,” according to experts at Glassnode.
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