Wednesday, October 4, 2023

Bitcoin Clears Its Losses for the Year


Bitcoin’s stealth climb over the last two weeks has not only moved it beyond the $45,000 barrier. It also brought the world’s most valuable cryptocurrency back into the black for the year.

In early Hong Kong trade, the token hit a high of $47,583. It was significantly higher than the $35,000-to-$45,000 area, where it had been held since early January. With the latest increases, Bitcoin is currently up around 1.2 percent for the year. This compares to the S&P 500’s 4.7 percent loss.

Continuous Breakthrough

Bitcoin should create a lot of upside momentum if it can maintain breaking through in a significant way. Furthermore, the Federal Reserve intensifies its grip on the money supply. The coin imprisons in a confined trajectory.

Other central banks are removing some of the stimulus measures enacted in response to the pandemic recession. As a result, less money is available to invest in riskier assets, such as cryptocurrency.

Furthermore, digital currencies have scrutinized, with speculation that they may be used to circumvent Russian sanctions. Many analysts, however, disagree with this assertion.

Despite this, Bitcoin and other digital assets such as Ether have been steadily rising this month in tandem with broader stock market gains in the United States. However, it took until yesterday for Bitcoin to convincingly go through $45,000. A level it had barely briefly tested since early January.

Nexo will attempt the top of the 2022 trading range for the fifth time, according to Antoni Trenchev, co-founder and managing partner. This is another of those Bitcoin moments where the narrative shifts quickly and investors pour in, driving the price of Bitcoin higher. It may be time to wake up from Bitcoin’s 2022 sideways nap.

Above the Moving Range

Despite its recent rise, Bitcoin’s performance has surpassed in recent days. Cardano, Solana, Polkadot, and Dogecoin are examples of alternative currency that have done this.

Cardano, in particular, has gained traction among traders, rising 30% in the last five days. However, such tokens will be unavailable until 2022.

Bitcoin was trading far above its 50-day moving average of $41,085, which is now at $41,085. According to Bespoke Investment Group, this puts it in the 80th to 90th percentile and in the “overbought” category. However, while this could indicate a price drop for many assets, it has historically been the opposite with Bitcoin, according to the business.

Bitcoin has overbought in the past, according to the Bespoke research (over the last five years). Going out one to twelve months, it has averaged considerable profits. Bitcoin’s spread reached in the ninth decile compared to its 50-day average, and it has traditionally climbed 16 percent in the following month.

According to data provided by Bespoke, it was up 100 percent six months later and 274 percent after a year.

Even while Russia’s war in Ukraine stretched on, Bitcon’s gains boosted it against gold, its traditional safe-haven adversary, which traded sideways during the period.

Louis Honsa
Louis Honsa
Louis Honsa is an independent writer for Cryptoconstellation. He is a data analyst and trades NFT’s too. Louis enjoys cycling and working out in his free time.

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