Bitcoin has been able to make a resurgence in recent weeks. The 25,000 USD barrier was recaptured by Bitcoin prices just two days ago, marking the first time since June 13th.<\/p>\n
Bitcoin Poised For New Rally<\/p>\n
In June, Bitcoin had its largest monthly decline since 2011, falling over 37.3% to a final value of $19,925. Since then, it has partially recovered its value and today saw its first test of $25,000.<\/p>\n
Bitcoin continues to rule the charts despite being down 46.5% from its previous high, but its dominance has decreased to slightly under 40% as opposed to more than 50% a few months ago.<\/p>\n\n
BTC\/USD trades slightly below $24k. Source: TradingView<\/p>\n
However, Bitcoin has been relatively peacefully fluctuating horizontally over the past two weeks between $22,500 and $24,500. At the same time, recent weeks have seen a significant recovery in both commodities prices and stock markets. As a result, the overall financial markets are experiencing the anticipated summer rally.<\/p>\n
Since attitude had reached a severe panic state in the middle of June as a result of the financial markets\u2019 steep, month-long decline, perception among participants has greatly improved during the course of the most recent rebound. This in and of itself is a well-known bear market pattern. However, it won\u2019t be known whether and how the bears will return until around mid-September.<\/p>\n
Over the previous four weeks, the Crypto Fear & Greed Index has made remarkable progress. The sentiment is still largely scared, though. Fear still permeates the cryptocurrency industry seven months after the devastating sell-off.<\/p>\n\n
Crypto Fear & Greed Index, as of August 11th, 2022. Source: Lookintobitcoin<\/p>\n
The feeling of being defeated permeates the wider picture as well. There are several excellent contrarian opportunities in this setting.<\/p>\n
Overall, there is still a contrarian buy signal due to the scared mindset.<\/p>\n
Sharp declines in the financial markets would be extremely detrimental to retain the current administration in office given the midterm elections on November 8th in the US. As a result, only a slight decline in the financial markets in September would be more likely. The markets could then rise from those lows until the American election.<\/p>\n
Since November 2021, the equity and cryptocurrency markets have been under intense pressure for months, but a broad rebound has now been going on for little over four weeks. The Nasdaq Composite, which is heavily weighted toward technology, has increased by over 20% from its low on June 16th as a result of this procedure, adding over $420 billion to its market value. This would imply that the bear market is officially over.<\/p>\n
Related Reading: Bitcoin Price Trades A Little Over $24,000, Can It Target $27,000?<\/p>\n
Featured image from Getty Images, chart from TradingView, and Lookintobitcoin<\/p>","protected":false},"excerpt":{"rendered":"
<\/p>\n
Bitcoin has been able to make a resurgence in recent weeks. The 25,000 USD barrier was recaptured by Bitcoin prices just two days ago, marking the first time since June 13th.<\/p>\n
Bitcoin Poised For New Rally<\/p>\n
In June, Bitcoin had its largest monthly decline since 2011, falling over 37.3% to a final value of $19,925. Since then, it has partially recovered its value and today saw its first test of $25,000.<\/p>\n
Bitcoin continues to rule the charts despite being down 46.5% from its previous high, but its dominance has decreased to slightly under 40% as opposed to more than 50% a few months ago.<\/p>\n
BTC\/USD trades slightly below $24k. Source: TradingView<\/p>\n
However, Bitcoin has been relatively peacefully fluctuating horizontally over the past two weeks between $22,500 and $24,500. At the same time, recent weeks have seen a significant recovery in both commodities prices and stock markets. As a result, the overall financial markets are experiencing the anticipated summer rally.<\/p>\n
Since attitude had reached a severe panic state in the middle of June as a result of the financial markets\u2019 steep, month-long decline, perception among participants has greatly improved during the course of the most recent rebound. This in and of itself is a well-known bear market pattern. However, it won\u2019t be known whether and how the bears will return until around mid-September.<\/p>\n
Over the previous four weeks, the Crypto Fear & Greed Index has made remarkable progress. The sentiment is still largely scared, though. Fear still permeates the cryptocurrency industry seven months after the devastating sell-off.<\/p>\n
Crypto Fear & Greed Index, as of August 11th, 2022. Source: Lookintobitcoin<\/p>\n
The feeling of being defeated permeates the wider picture as well. There are several excellent contrarian opportunities in this setting.<\/p>\n
Overall, there is still a contrarian buy signal due to the scared mindset.<\/p>\n
Sharp declines in the financial markets would be extremely detrimental to retain the current administration in office given the midterm elections on November 8th in the US. As a result, only a slight decline in the financial markets in September would be more likely. The markets could then rise from those lows until the American election.<\/p>\n
Since November 2021, the equity and cryptocurrency markets have been under intense pressure for months, but a broad rebound has now been going on for little over four weeks. The Nasdaq Composite, which is heavily weighted toward technology, has increased by over 20% from its low on June 16th as a result of this procedure, adding over $420 billion to its market value. This would imply that the bear market is officially over.<\/p>\n
Related Reading: Bitcoin Price Trades A Little Over $24,000, Can It Target $27,000?<\/p>\n
Featured image from Getty Images, chart from TradingView, and Lookintobitcoin<\/p>\n
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