We are in the middle of one of the worst bear markets in cryptocurrency history. Surprisingly, the first quarter of 2023 was good, with investors receiving positive returns on most cryptocurrency holdings. But while macro-weakness is still there, Bitcoin and other cryptocurrencies were unable to mount a significant rally.
Recently, Bitcoin broke below its rising channel, casting doubt on the idea that it will recover. It is essential that BTC maintains accumulating liquidity at the present levels over the coming weeks. In the worst-case situation, failing to do so might result in a reduction of up to $15,588. Having stated that, the asset will have two opportunities to redeem itself, at around $21,351 and $18,126.
Should there be a comeback, BTC would be evaluated at around $28,585. Should it surpass that level, it has the potential to increase to $31,804. Nevertheless, it doesn’t appear that this scenario will materialise very soon given the present state of things and market attitude.
Crypto Market Recovery: Timing and Factors to Watch,Crypto Market Recovery: Timing and Factors to Watch
The volume mismatch in spot-derivatives has been highlighted by a number of industry observers. Actually, any rise that has accompanied an increase in open interest has now subsided, as examined in a recent piece.
According to analyst Dylan LeClair, Bitcoin will either “maddeningly chop around” until flows significantly rise or the supply becomes sufficiently constricted for the present level of passive flows to drive the market upward.
Bitcoin’s Past Pattern
When faced with uncertainty, examining past patterns provides some degree of clarification. So let’s take a closer look at the monthly results to see where Bitcoin is at in its comeback.
September has always been the worst month for cryptocurrency investments. Bitcoin has had eight out of ten red closings since 2013. Its returns were negligible in the other two cases as well [2% and 6%].
Therefore, it doesn’t appear like September 2023’s story will be any different given the numerous holes that still need to be filled.
Crypto Market Recovery: Timing and Factors to Watch,Crypto Market Recovery: Timing and Factors to Watch,Crypto Market Recovery: Timing and Factors to Watch, Crypto Market Recovery news, Crypto Market Recovery News