The second half of May was very sad for Bitcoin. The price of the coin dropped more than 35% in just last month. Here are the conditions for Bitcoin to exceed $40,000.
While some in the community argued that the fall, or rather the correction, was of a fairly routine nature, others were clearly disappointed by it.
Speaking on similar lines in a podcast Recent Eric Weinstein, MD of Thiel Capital, opined
“That [a queda de preço] it wasn’t universally seen as fun. It just wasn’t. ”
While volatility is one of the main factors that differentiates the cryptocurrency market from other traditional financial markets, the executive clearly yearned for a change in narrative.
There’s no denying that the price of Bitcoin has been shaky lately. Last week, currency flows stabilized, indicating that there is no real directional trend. Furthermore, the sale and purchase take place in parallel.
As is evident from the chart above, the ‘newer coins’ are getting rid of themselves. Coins aged 3-6 months have seen a big increase recently. Another interesting trend is that there is another increase in the sale of coins from one to three months. However, long-term holders are still adding and accumulating in their cart, thus creating a contrasting trend that short-term market participants create.
Then, although realized losses started to ease after the massive price dump on May 19, it should be noted that currencies are still being sold at a loss. Anthony Pompliano of Pomp Investments in his recent newsletter said:
“Bitcoin has an uphill battle because there is a good portion of the supplies purchased in consolidation between $50,000 and $60,000. Some of these buyers will seek to minimize their perceived losses by selling what they believe is a complacency jump on the rally. ”
Even though it takes a little longer for these coins to accumulate, Pomp said things weren’t completely going off the rails for Bitcoin.
Normally, whenever the stable money supply rate (SSR) decreases, it implies a trend reversal and a potential increase in the money price. Although the SSR has recently declined, the price of Bitcoin has shown no significant or decisive signs of an uptrend.
Even when the coin started to resurrect a few days ago, Musk’s Twitter game managed to put the brakes on the coin’s rebound. The bulls, at this point, are in desperate need of new whales to step in and do some heavy lifting. So far, the currency has been trading in the $35,000 range.