Bitcoin, end of Bear Market or simple Bullish Correction?
Hello everyone, today I look back at the impressive bullish correction that occurred this week in
BTCUSD
.
Madness this week on the crypto market, Bitcoin takes more than 20%, Ethereum 15% and Solana 35%!
The question we can ask ourselves is, Is this the end of the Bear Market or a simple bullish correction?
Let's start with the reasons for this week's rise. From a fundamental point of view, we do not have much important information...
The first reason is the liquidation of short positions. The cryptocurrency market saw $721 million in liquidations in 24 hours, a record since November 8, 2022 and the announcement of the FTX bankruptcy.
The second reason is the end of the U.S. reserve's restrictive policy. Inflation in the US is decreasing, which allows the FED to slow down the increase of interest rates.
And finally the third reason is the low liquidity of the markets on weekends which accentuates the movement of the week.
From a technical point we can observe above that we are still in a bearish channel and that as long as this oblique resistance is not broken we will remain in a bearish trend. We can also observe that although there has been an important bullish movement it has not broken the technical resistance of $21500.
Conclusion: As the crypto-currency market has accustomed us in recent years, bitcoin as well as other crypto assets remains very volatile. However whether from a fundamental or technical point of view we remain bearish for the time being. In my opinion, as long as we haven't broken the bearish channel and the $30,000 technical zone we will remain bearish on bitcoin.
THIS IS NOT INVESTMENT ADVICE.
Written by @maxencechachuat on 14 January 2023.
BTCUSD
. Madness this week on the crypto market, Bitcoin takes more than 20%, Ethereum 15% and Solana 35%!
The question we can ask ourselves is, Is this the end of the Bear Market or a simple bullish correction?
Let's start with the reasons for this week's rise. From a fundamental point of view, we do not have much important information...
The first reason is the liquidation of short positions. The cryptocurrency market saw $721 million in liquidations in 24 hours, a record since November 8, 2022 and the announcement of the FTX bankruptcy.
The second reason is the end of the U.S. reserve's restrictive policy. Inflation in the US is decreasing, which allows the FED to slow down the increase of interest rates.
And finally the third reason is the low liquidity of the markets on weekends which accentuates the movement of the week.
From a technical point we can observe above that we are still in a bearish channel and that as long as this oblique resistance is not broken we will remain in a bearish trend. We can also observe that although there has been an important bullish movement it has not broken the technical resistance of $21500.
Conclusion: As the crypto-currency market has accustomed us in recent years, bitcoin as well as other crypto assets remains very volatile. However whether from a fundamental or technical point of view we remain bearish for the time being. In my opinion, as long as we haven't broken the bearish channel and the $30,000 technical zone we will remain bearish on bitcoin.
THIS IS NOT INVESTMENT ADVICE.
Written by @maxencechachuat on 14 January 2023.