After dropping to $60,000, Bitcoin price is now about to regain $70,000 and its 15-minute color is no longer red. And they are the same size as yesterday. Well cryptocurrencies It suddenly rises vertically as quickly as it falls. Bitcoin price is bouncing back after billions of dollars in liquidations. So how reliable are these returns historically?
Crypto Historical Data
Economist Alex Krüger of BTC He reminded historical data by drawing attention to the stronger comeback following the US market opening. If the Bitcoin price drops sharply and then rises aggressively the next day, what’s next?
“After a market crash, an aggressive recovery the next day is vital so you can tell if the bottom has arrived.
When the recovery is weak, in the subsequent pullback, long-term investors lose all their gains back. When the bounce is strong, dip buyers and FOMO-longs become more dominant on the subsequent pullback.
Therefore, the strength of the bounce determines whether the market sees the decline as a trap or an opportunity.
“That’s how it works.”
Now let’s see what we have. Has Warsh positioned himself in favor of QE? No. Did Iran and the USA reach an agreement? No. Was the Supreme Court tariff decision announced in Trump’s favor to avoid chaos? No. Bitcoin 82 thousand dollars ETF Did the investor recover his average cost? No. Will the Fed reduce interest rates in at least the next 2 meetings? No.
Too many questions with no answers tell us that the risk of decline in cryptocurrencies continues. So why is crypto rising then? Yes, the crypto is rising, but when it approaches $70,000, if it does not reclaim this area at the same pace as it fell and return to $90,000 within 2 weeks, this return will not be seen as aggressive buyer action. What is it seen as? It means that we see a “balancing” rise after major risks trigger a larger wave of sellers, and the decline will continue after the break.
Of course, we do not have a magic ball that shows the future, and if you could see the future, you would take the right position and move towards increasing your wealth instead of telling people about the next move. But if we look at the possibilities, these are the possibilities.
Scott Melker
Volume reflects the potential for continued steady movement in that direction, regardless of which direction the price moves. Bitcoin is rising So how strong is the volume? It’s not as incredible as the fall, but it’s not so weak that you can ignore it either. Scott Melker shared the chart below and wrote that markets returning with strong volume are promising.
