Bitcoin Bounces Back
Compared to the first five months of this year, the cryptocurrency market’s extreme volatility has subsided. Although, when it comes to cryptos, the $10,000 range seen in Bitcoin over the last month translates to a $10,000 pip range, which would be massive in all other markets.
The Fall of Bitcoin
By the middle of April, Bitcoin had reversed course, sliding just below $65,000. By the middle of May, the crash had occurred when China declared war on BITCOIN mining farms. Supposedly due to the high energy consumption when the world is transitioning to a green energy era. Bitcoin first fell to $30,000 before plunging to $29,000 in June, but the support zone is still around $30,000.
Traders Still Spetical To Invest
Although the high is barely beyond $40,000, the range’s resistance zone is about $40,000 at the top. Hence the range is around $10,000 wide. Nevertheless, investors have been finding it difficult to push to $40,000 since the middle of June, as moving averages keep pulling it down.
Although the mining difficulty has lowered, traders are still hesitant to invest since the market is immensely fluctuating. After a substantial reduction in the hash rate after China’s crackdown on cryptocurrency and Bitcoin mining, Bitcoin’s mining difficulty rate has fallen by almost 28%. It is the most substantial decrease in mining difficulty since Bitcoin’s inception in 2009.
Will Bitcoin Ride the High?
Is it safe to sell Bitcoin from here? Although the stochastic indicator at the bottom of the chart is oversold, it is probable, but the risk/reward ratio is too high, and the selling pressure appears to be too weak. Consequently, there is still a lot of uncertainty in Bitcoin, and trading right amid the range is too risky. It would be wiser to watch the cryptocurrency until the price approaches $30,000 if it can and go long from there.
