Cryptocurrency News

Bitcoin price fluctuations reached a high of 2021 as an analyst achieved a target of $ 15,000


The current cryptocurrency market scenario is only for traders who have an extreme appetite for risk. But for the weak-hearted, analysts recommend further patience and caution.

The approach to bitcoin is long (B T c) And ether (ETH), The top cryptocurrency by market capitalization that behaves more or less as a locomotive for the rest of the crypto market. According to data provided by Skew, as of Wednesday, ETH / USD realized on a 30-day timeframe that the volatility had reached near peak levels in 2017.

Bitcoin and Ethereum 30-day realized volatility reached a high of 2021. Source: ByBt.com, Skew

Meanwhile, ByBt.com shows Bitcoin’s 30-day volatility at its annual high, suggesting that benchmark assets remain at risk of wild price fluctuations in further sessions. Simply put, the top two crypto-assets show the possibility of moving in any direction with a high degree of volatility. All and all can mean both aggressive gains and losses for day traders.

Falling market shopping

The volatility alarm rings at a time when both Bitcoin and Ether have posted incredible recovery rallies following a recent price drop. In retrospect, the BTC / USD exchange rate fell more than 50% after reaching near $ 65,000 in April – a correction partially driven Elon Musk Anti bitcoin tweet and China’s crypto ban Recurrence last week.

Ethereum, which currently has a positive correlation efficiency with bitcoin 0.88. Sits near, Completed the recessionary correction of the benchmark digital asset. The second-largest cryptocurrency experienced a maximum 60% drop in its market valuation – compared to its record high of $ 4,380 since mid-April.

But the bulls saw opportunities for the above price drop, so much so that they helped recover bitcoin and ether prices from below their local value by 36.12% and 68.52% respectively. Some analysts anticipate that upside retracement will proceed based on a supportive macroeconomic catalyst, mainly based on inflation fears.

Tech Bull Kathy Wood, who heads Ark Investment Management, Reiterated its $ 500,000 bitcoin price target after last week’s crash, calling the decline “a really good time to buy”.

Nevertheless, many cautioned traders to buy during the recessionary correction phase, particularly after a one-year price rally that increased the risk of long-term investors taking advantage. Analysts at the BiotechValley Insights Consulting Group said bitcoin has fallen drastically even after the US Consumer Price Index rose 4.2%, suggesting that the crypto market is now going through a “phase of concern”.

“I believe that bitcoin has a long way to go from here,” said one of the analysts at Biotech Valley. Written in a note. “I think it will slowly grind down the slope of hope with the dead cat boom from time to time.”

“I think it will slowly grind down the slope of hope with the dead cat boom from time to time.”

The group called for a $ 15,000- $ 16,000 price target for bitcoin.

Reduced risk-appetite? just wait

Kourosh AK, independent market analyst Rather the middle way. He advised traders to wait for a clear bounce above short-term resistance levels before determining their market bias. Excerpts from his tweet:

“After a 60% + market crash, I’ll need a small upside in shifting bias back to bull market bullish. Stay cautious until we capture $ 45,000 BTC and $ 3,400 ETH. [I] Be patient here. There is no need to grab exact bottoms or sell exact tops to make money. “

Recent rebound The number of outstanding bitcoin futures contracts has increased from $ 11 billion to $ 11.88 billion, reflecting a steady climb in leveraged positions in the derivatives market. Meanwhile, long positions worth more than $ 12 billion have been eliminated since the May 19 price crash.