“There’s a lot of downside and we should be getting closer to a point where you really want to buy in the next couple of months,” he added.
Bitcoin suffered in recent weeks as the Federal Reserve hikes interest rates and inflation remains high, fueling prospects for further monetary tightening. Although the token has been touted in the past as a hedge against inflation, in recent months it has proven to be highly correlated to risky assets such as Nasdaq 100 companies, which have fallen amid the turn of the cycle.
On the other hand, the relative strength indicator (RSI) entered a period that has historically preceded long-term investment returns.
Marcus Sotiriou, an analyst at GlobalBlock, explained data from on-chain analytics firm Glassnode shows that bitcoin is approaching a region that is below the average cost of all holders on the blockchain. “Previously, over the years, when bitcoin enters this region it has presented four buying opportunities.”, Explain. “Both indicators suggest that the crypto markets could be close to bottoming out in this bear market that we find ourselves in.”adds the expert.
As for Ethereum, the price analysis is bearish, as we have seen consolidation turn into weakness that has made it impossible for bulls to regain control. Therefore, technical analysts expect another lower local high to be established and Ethereum to move back towards the main support at $1,900.
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Source: Ambito
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