Bitcoin reduced the weakness over the weekend and recovered to the 30,000 area

Bitcoin has recovered to about 30,000 after spending most of the weekend below that level.

The largest cryptocurrency in Asia rose 1.8% to 4 30,450 on Monday morning. This is the longest losing streak since August 2011, after falling for seven consecutive weeks, according to data compiled by Bloomberg. This echoes the seven-week decline in the S&P 500.

“If the S&P goes down a bit more, it will create a final flush and a great buy opportunity for Bitcoin,” said Mark Newton, a FundStrat global technical strategist. “There is a lot of bearishness, and we have to come to a time when you really want to buy it in the next few months.”

Bitcoin has struggled in recent weeks as the Federal Reserve raises interest rates and inflation remains high, raising the possibility of further monetary tightening. Although the token has been identified as a hedge against inflation in the past, in recent months it has been shown to be highly correlated with companies such as the Nasdaq 100, which has fallen under the changed regime.

“Bitcoin is likely to hover between $ 29,000 and $ 31,000 for the next few weeks,” said Noel Acheson and Conrad Laser of Genesis Global Trading in a note on Friday. They added that some economic-data releases, such as the US Gross Domestic Product or the inflation system, “could change the narrative.”

Rick Bensigner, president of Bensigner Investment Strategies and former Morgan Stanley strategist, uses the DeMark technical indicator – which compares the recent highs and lows with the equivalent of the previous time to measure demand – arguing that bitcoin is more likely than not. .

“I would still expect four more weeks of heaviness,” he said in a note on Monday. The May 12 low of around $ 25,425 and the bounce from that at $ 28,900 kept support intact, he said.

© 2022 Bloomberg

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