Key facts:
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Bitcoin price broke above the $22,000 resistance for a bit after 25 days.
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Although it seems like a positive move, analysts warn that it could push prices lower.
The price of bitcoin (BTC) momentarily surpassed the resistance of USD 22,000, a figure that had not traded for 25 days. This reflects an increase in demand, which raised the enthusiasm of some investors. Although specialists warn that this rise does not mean that the crypto winter is over, so we could see lower prices.
Trader Eduardo Gavotti told CriptoNoticias: “I wish I could say when the crypto winter will end.” He explains that we are still in a bear market (bearish season) and the market phases have their maturation times.
In this sense, it indicates that it maintains the opinion that we still have room to fall, with some bear market rallies. That is, visualize that there will be some bullish corrections amid a downtrend from bitcoin and the crypto market.
“In the past, the BTC market has taken 8 to 12 months to resume the upward path, after having bottomed out,” he alleges. Therefore, it would not be out of the ordinary for the current crypto winter to last a while longer, such as think it will happen glassnode. Especially considering the current macroeconomic context.
Currently bitcoin has been trading below its all-time high of almost $69,000 from November 2021 for 8 months. the cryptocurrency could tread lower prices, from your perspective.
There is still no certainty that bitcoin has bottomed out in this crypto winter
“There are those who believe that we have already hit rock bottom (like the CEO of Binance), but I am not so sure, says Gavotti like others in the community. The lowest price bitcoin has touched this season was $17,600 in June.
Although it has stayed away from $17,600 for the time being, there is not much momentum in demand yet, so it could fall below that level. As for the near future, trader and consultant Michael van de Poppe Indian what bitcoin it could retest $20,700, having touched the $22,000 range.
Understand that some consolidation and accumulation is required to overcome the new resistance it found at $22,300. It considers that it will be “heavy” to break above this level, since it is close to the 200-week moving average, which it has been below for 30 days.