Bitcoin and the next moves
Bitcoin's recent price action has shown signs of a recession, with bitcoin prices hovering around USD 85,000 levels, with the cryptocurrency trading in a tight range this week.
Although Bitcoin has recovered from previous bearish corrections, the price is having difficulty breaking through the current resistance levels, which indicates weak buying momentum and caution among traders.
Long-term investors remain steady, but short-term investors in the market seem to be under some pressure.
As the escalation of trade tensions between the US and China has increased the volatility of global markets including bitcoin, and with gold prices rising in response to the risk aversion environment, Bitcoin managed to hold above a critical support level after experiencing a correction of more than 30%.
The growth of stablecoins is slowing down, which means that there is less capital flow to cryptocurrencies.
Finally, investors are waiting for the moment when macroeconomic conditions improve and liquidity returns to the market, the Bitcoin price may resume its upward trajectory, and until then the data suggest that patience and risk management may be wise for market participants who are waiting for a clearer trend reversal.
With a technical view, we are waiting for the intersection of the 50-day moving average below the 200-day moving average, which is called the death spot, which if it happens, we may witness a strong decline of bitcoin during the coming period at least towards the levels of the main uptrend near the levels of at least 70 thousand dollars.
