Although yesterday’s 13% gain brought welcome relief, uncertainty remains. The question in everyone’s mind is, are we still in the bull market?
Source: @WClementeIII on Twitter.com
Sentiment remains raw
The events of the last fortnight have shown that bitcoin is not safe from market manipulation, as FUD or some suspects. Holding during this period has been a painful experience for most. But the biggest fear is that last Wednesday’s crash signaled the end of the boom.
The debate still continues on whether this is so or not. From the point of view of emotion, reading of reading 22 The Fear and Grid Index shows that frazzled veins are still raw with extreme fear.
This is a marked improvement from yesterday’s 10 level. But to say that the market remains cautious would be a silence.
The Fear and Greed Index measures emotions and emotions to represent them on a scale of 0 to 100. 0 represents excessive fear, while 100 represents excessive greed.
A glance at the bitcoin daily chart shows that the BTC is currently below the 200-day moving average, indicating that the bears still hold the upper hand despite yesterday’s relief rally. It is necessary to close above the 200-day moving average to remove the possibility of the bull market ending.
BTC is trying to build on tomorrow’s gains and is operating above the 200-day moving average. But until this happens, from a technical point of view, it is too early to say with confidence whether the bull cycle is intact.
Source: BTCUSD on TradingView.com
What’s next for bitcoin?
This has not stopped the flood of analysts from giving their opinion on the case. Founder of Fundstrat Global Advisors, Tom Lee, Said volatility is the nature of bitcoin. He maintains his pre-accident price forecast of $ 100k until the end of the year.
“I think bitcoin is over-volatile. It’s its nature, but that creates a reward for people.”
Again, even though bitcoin is in the penalty box right now, I still think that it could drain more than $ 100,000 a year.
Similarly, in an interview conducted by Scott Melker, Alternative plan Its stock-to-flow (S2F) and stock-to-flow X (S2FX) models tried to reassure viewers by saying that the bull market is intact.
According to their analysis, bitcoin is on its way to reaching $ 100k per S2F model or $ 288k for S2FX models.
“I’m very data-driven so I don’t make it, but I read in the data, I look at my stock-to-flow model, stock-to-flow model, and stock-to-flow X. model, and both The models actually show that we are definitely not at the end of the cycle.
If you follow the stock-to-flow X model then we still have some room to go, to an average of $ 100,000 or $ 288,000 on average.
S2f A statistical analysis refers to a model that looks at the effect of depletion on the price of bitcoin. Critics argue that scarcity is not the only driver of price.