Bitcoin Won’t Be Bottoming Soon Even After 9 Weeks Of Losses

Bitcoin won’t be bottoming out soon even after the 9 weeks of losses while the $29,500 level is acting as major support for the cryptocurrency so let’s read more today in our latest Bitcoin news.

Bitcoin added 5.6% in the past day to raise over $30,000 in the Asian trading hours on Monday in a brief show of strength amid the record losing streak. The asset dropped for nine consecutive weeks for the first time in history and fell from $48,160 in late March to last week’s closing of $29,600. The drop came with the inflation concerns in the broader economy which is a move away from the risk assets and the systemic risks from the crypto industry.

The price chart suggests that BTC saw strogn support at $29,000 which is a level that was tested a few times in the past weeks and the closing below the level can mean that the crypto can drop to its 2017 high of $20,000 as the charts show. The resistance of $30,500 continues to exist yet, but the daily close above this level could show stronger recovery signs.

The RSI readings dropped to 30 which suggests signs of bottoming out and the short-term buyers could add to the week’s momentum so the sentiment data from last week already suggests the market could be headed for the higher prices in the upcoming weeks. The analysts said that investors will continue to assess price-actions before deploying more capital. Simon Peters, an analyst at eToro said:

“U.S. markets saw a modest revival last week with stocks rising across the board. Although crypto didn’t see quite the same revival, prices have now been holding steady in major cryptos such as bitcoin, suggesting a ‘calm’ of sorts before any fresh commitment to the market is made by large players.”

Monday’s run came at the back of the bump in Asian equities amid the reports that the major Chinese cities started to ease COVID restrictions after months of strict lockdowns. The traders laid their bets that the reopening of the economy can spark an increase in consumer spending that will increase company revenues in the upcoming weeks so it could indicate a bottom of the stocks for the entire region. The Asia Dow Index increased by 2.15% while the Hong Kong Hang Seng index added another 2.06% and Japan’s Nikkei added 2.9% with the EU indices like Stoxx 600 and DAX added at least 0.82% since the start on Monday. The futures in the US increased with NASDAQ 100 jumping 1.44% and the S&P500 added 1.08%.

Some analysts said a recovery in BTC can take longer than expected while FXPro Senior Market analyst Alex Kuptisikevich added:

“It will be premature to talk about a bullish counteroffensive until Bitcoin gets above $30,600, its horizontal resistance line since mid-May. Renewed risk appetite in global markets is fuelling hopes of a turnaround. Divergence in equity and cryptocurrency dynamics was conspicuous last week, highlighting the weakness of the crypto market.”