BTC remains at risk of faltering as the price is hovering near the $60K region with a wild run-up on the market as the traders hesitate to buy it at higher rates so let’s read more in our latest BTC news today.
The analysts warn that the BTC/USD rate could pare the gains and call for a 58,200-62,100 area as a reversal zone adding that the traders will be able to confirm a rising sell-off sentiment if the daily candle of Bitcoin forms another low. If this happens, the crypto risks falling to new lows of $50K. Mr. Principato warned traders against opening a new bullish position at the recent high:
“If I am going to look for a new swing trade long, I would be most interested in setups that unfold there.”
The analyst cited that the Elliot Wave theory will guess the next crucial BTC level and noted that the first sell-off from $57K will spark a broad correction move:
“These are very tricky and can even make a new high (like we see now) before they become obvious. If the swing from 57K to 45K was Wave A, this current run from 45K to 61K may be Wave B (typically 3 legs which are now clear in the formation). Confirmation will be in place if the 50K support is taken out. If a Wave C unfolds from here, it can take price back to 37K potentially over the next few weeks.”
Even with the downbeat outlook, Principato said that he’s not bearish on BTC. His statements followed the relentless upside of the cryptocurrency that followed after the pandemic induced crash to $4000 back in March. The BTC/USD exchange rate recovered sharply after the Federal Reserve slashed the benchmark lending rates to a near-zero level and launched an open-ended bond purchasing program to protect from the US economy. The BTC price recovery received another boost from the government’s trillions worth stimulus program. The investors added that the cryptocurrency served as a better hedge against cash while the traditional instruments offered bigger returns to oversupply from the US Central bank. As a result, BTC logged a 1500% bull run from the mid-March low of $3858.
With most of the fundamental factors being in place especially now with the new stimulus package worth $1.9 trillion, investors are flocking to BTC and are seeking shelter from the high inflation risks. Masafumi Yamamoto from Mizuho Securities said:
“Investment by institutional investors and corporates is increasing. It’s what I call the financialisation of bitcoin.”
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