Confidence returns to Bitcoin
Bitcoin investors and traders were cheerful this week as the prominent cryptocurrency maintained its price in the $22,000-23,000 range for the first time since June.
The Bitcoin price settled above the $21,500 resistance zone, as it started a gradual increase and pushed through to above the $22,800 level before retreating.
By late Tuesday, BTC was trading in the $21,960-22,000 range and was marginally up at $23,130 by Friday.
“It’s been a tricky few months for the cryptocurrency market which, like all risk assets including stocks, have been hit by a wave of gloomy investor sentiment based on economic slowdown fears, inflation and geopolitical factors,” explained crypto advocate and deVere CEO Nigel Green.
“Crypto isn’t out of the woods just yet, with maybe a small and final rinse-out on its way before a considerable price bounce towards the end of the year.”
The chief executive of the independent financial advisory and fintech said that much of any potential bad news for the risk assets market, including central banks’ tightening agendas, has already been priced-in.
“This means that investor sentiment and, therefore, the price should not be rocked.
“People are starting to realise that, clearly, headwinds remain for economies around the world, but that some quality assets, like Bitcoin, are currently cheap,” said Green. Creeping confidence
“Confidence is creeping back into all markets. On Bitcoin, people are appreciating the inherent current and future value of digital, borderless, global currencies, and will start moving now to take advantage of the current lower valuations.”
The deVere CEO recently said that we’ll soon see a bull run that will lead to a “significant bounce” in the fourth quarter of the year for the world’s leading digital currency.
“One good indicator that the bottom is near is that tracking services reveal that ‘insiders’ are on a buying spree. They’re taking advantage of reasonable valuations to top-up stakes in quality companies in order to create and grow wealth in the longer term,” he noted.
As Bitcoin makes gains, as is expected, the wider crypto market follows suit. Ethereum has rallied more than 7% to top the $1,450 mark in the last 24 hours.
The global crypto market cap rose more than 3% this week to reclaim the $1 trillion mark.
“As the sugar-rush of free money fades away, we can see the real value of assets,” Green said.
“And despite coming down 50% from its hype and heatfuelled November high, Bitcoin remains the best-performing asset class of the decade.
“We expect a less high-octane, more steady, continued upward trajectory for Bitcoin over the next few months.”