Cryptocurrencies soar? Has the market reversed?

Since it was rumored that Amazon would accept bitcoin and other cryptocurrencies this year, bitcoin surged to nearly $40,000, although Amazon’s denial and Binance’s continued tightening of regulations led to a brief retreat before rising above $40,000.

Previously, institutional investors were discouraged from cryptocurrencies due to the slump in Bitcoin, but recently the banking giant State Street announced the launch of a cryptocurrency business, and GoldenTree, which manages $45 billion in assets, also announced its investment in cryptocurrencies. The cryptocurrency market got rid of the pessimistic market conditions for several months, and Bitcoin, Ethereum, etc. hit new highs in recent months. Is the bull market back?

Knowing the period is bound to call back

After Bitcoin reached the 42,000 level, the whale with the third-largest amount of Bitcoin moved 3,000 BTC to Coinbase. The giant whale's current holdings are also the highest since April. This reflects that the whale is preparing to take profits. This does not mean that Bitcoin will plummet, as data shows that the whale has been buying low and selling high, and is gradually increasing its holdings, so it will only affect the short-term price.

In addition, data from multiple exchanges shows an increasing trend in the number of bitcoins, reflecting an increase in the number of people intending to sell bitcoins.

From a technical point of view, the Stochastic RSI also shows that it has now reached oversold levels.

Based on various data analysis, cryptocurrencies will be under pressure in the short term. However, according to the survey of some institutions, the interest of institutions in cryptocurrencies is increasing, and the rising inflation and the overheating of the stock market are one of the reasons. Therefore, the cryptocurrency market is still worth being optimistic about.

Original link: Passive Dad