Here’s some “cold comfort” for those bulls who left cryptocurrency market
According to data provided by the Director of Global Macro at Fidelity Jurrien Timmer on his Twitter account, Bitcoin has bottomed out, as two technical and market indicators To display.
The first tool used by Timmer is the descending channel in which Bitcoin was moving since reaching the all-time high in November. The first test of the lower border of the channel happened back in January, when Bitcoin hit $31,000.
For now, Bitcoin has reached support at around $22,000, which makes a medium-term bounce possible from a technical perspective. Unfortunately, digital gold was unable to reach the upper edge of the formation the last time it approached the lower range of the channel.
The second tool used by the analyst is the ABC waves count, which is essentially Elliott Wave Theory. The theory suggests that the market moves in certain wavelike patterns. Unfortunately, backtesting results show that the theory does not work on Bitcoin or other digital assets.
The analyst called it “cold comfort” for bullish Bitcoin holders and said the macro economy “couldn’t get any worse” right now given Fed policy, trading “surprisingly” high inflation data and a sell-off in financial markets. .
June 13 became one of the worst days for crypto after the Terra-related market crash. Bitcoin has lost over 20% of its value in less than 24 hours and reached prices the market has not seen for over the year.
The altcoin market also took a fatal hit as Ethereum plunged to $950 at one point following the massive volume of sell-offs in the lending and borrowing market. According to reports, the crypto market has faced over $2 billion in liquidations in the past 48 hours.
