End of surrender? Bitcoin (BTC) continues to trade below $30,000. If traders and analysts agree on an upcoming rise, new local lows should be expected before any recovery.
Bitcoin Below $30,000: Bull Trap Now, Bullish Reversal Later?
The price of bitcoin is close to $28,000 today, May 26, 2022. It subsequently manages to regain $29,000. Bitcoin trades at $29,427 at the time of writing this article. It is currently recording a daily loss of 1.12%.
For trader Michaël van de Poppe, bitcoin keep on going to target the $32,800 and $35,000 “. Is today’s rebound proof of the resilience of bitcoin that would indeed be poised to reclaim levels above $30,000?
Trader il Capo of Crypto believes that this rebound could be the “ last bull trap before $25,000 “. This analysis is based on observation of the order book.
On-chain analyst Root has a more bullish view. He shared what he feels is “ the most important chart in bitcoin currently “.
Root points out that the markets were treated to a capitulation of long-term bitcoin holders (LTH) “over the past few months”. This capitulation was reflected “by the rapid fall in the base cost of LTH”.
The base cost of LTH is the average purchase price at which long-term holders bought their bitcoins. The drop in this cost base shows that more recent long-term holders have sold their bitcoins at higher prices.
Root, however, sees a recent rise in this base cost. This increase would be a first sign that the LTH may have stopped capitulating “. This signal is certainly early, but the markets have “finally a change of trend”.
The price of bitcoin may start to rise again, but it is difficult to estimate based on Root’s analyzes whether this sustainable rise will take place in the coming days, weeks, or months.
The FED has so far failed to deliver the final blow to bitcoin. The bulls’ agenda nevertheless continues to remain unclear.