Bitcoin, which briefly breached resistance at $22,000, is a level it hasn’t seen in 25 days. This is due to an increase in demand which has fueled the enthusiasm of some investors. Experts warn that this does not mean that the winter of cryptocurrencies is over and we could see a further drop in prices.
Eduardo Gavotti, a trader. “I wish I could predict when the cryptocurrency snow is going to end“. He explained that we are still in a bear market and market phases have maturing times.
He said he still believes there is room for the downside and there are bear market rallies. He is eyeing upside corrections in the face of a bearish trend for bitcoin and cryptocurrencies.
He says it took 8-12 months for the BTC market to recover from a low in the past. Glassnode thinks it would not be unusual for the duration of the current crypto winter to last a bit longer. This is especially true given the current macroeconomic environment.
For the past eight months, bitcoin has been trading below its November 2021 high of nearly $69,000. According to him, however, the cryptocurrency could still be trading lower.
It is uncertain whether bitcoin bottomed out during this cryptowinter. “There are some who think we’ve hit rock bottom already (like Binance’s CEO), but I’m not so sure“said Gavotti, along with other members of the community. In June, bitcoin was at its lowest price of $17,600.
It’s currently sitting a bit below $17,600, but it hasn’t been in such strong demand, so it could drop below that level. Michael van de Poppereported that bitcoin may hit the $20,700 mark in the near future after breaking through the $22,000 level.
Well, #Bitcoin$22.3K was reached and all the highs have been taken for now.
Some consolidation and build-up is required (might retest $20.7Kish) before markets are ready to break above 200-Week MA, which will be a heavy one. pic.twitter.com/yq5XxeE20v
— Michael van de Poppe (@CryptoMichNL) July 8, 2022
He thinks consolidation and accumulation is needed to break through the resistance at $22,300. He also thinks it will be difficult to breach this level due to its proximity to the 200-week moving average, which it has been below for 30 days.