Technical Analysis

Buying-the-dip has supported Bitcoin | Forexlive

Bitcoin Market picture

The Bitcoin and crypto
market is waking up from a complete lull. Down just over 1% yesterday in the
$16.5K area, bitcoin hit lows since late November, triggering a wave of stop
orders during the early Asian session that dragged the price to $16.25K at one
point. This was followed by a buying spree, gradually bringing the price to

relatively small moves so far have not changed the centre of gravity by
historical standards, leaving the first cryptocurrency to range narrowly for
the past month and a half.

During the
bull market in cryptocurrencies, a lack of growth was often seen as a precursor
to declines. Now, interest in buying on declines may signal interest from
long-term buyers. Of course, this is only true for the current fundamental

According to
CoinShares, investments in crypto funds fell by $30M last week, with outflows
the highest in 14 weeks. Bitcoin investments decreased by $18M, and Ethereum by
$9M. Investments in funds that allow shorts on bitcoin increased by $1M.
Trading volumes rose to $866M, up from $678M the previous week.

Bitcoin News background

Real Vision
founder Raoul Pal expects to see the market bottom by March 2023, after which a
slow recovery will begin. He attributes this to the end of the Fed’s rate hike
cycle. According to Pal, bitcoin is the least attractive of the major assets,
as it is more stable. Ethereum has more upside potential.

SEC chief
Gary Gensler said that the cryptocurrency market might operate under the rules
that apply to the securities market. However, he stressed that crypto assets
are too volatile and speculative, putting investors at significant risk.

According to
CoinGecko, over the past year, 3,300 cryptocurrencies (about 40%) out of more
than 8,000 at the beginning of the year – have left the market. According to
the portal’s rules, a cryptocurrency can be removed from the site due to a lack
of activity for two months or if it is confirmed that the project is
fraudulent. More than 117,000 fraudulent tokens have appeared on the market
since the beginning of 2022, Solidus Labs estimated.

intends to recognise cryptocurrency as an investment asset. A new investment
and securities bill has passed its second hearing in the country’s parliament.

This article was written by FxPro’s Senior Market Analyst Alex

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