Analysts predict China mining ban may take Bitcoin lower
Study suggests Bitcoin investors are still bullish about the digital asset's near-term future.
- BTC is exhibiting bi-weekly gains of 5% currently.
- According to certain metrics, Bitcoin's market sentiment is running quite low at the moment.
- Over the last 30 days, BTC has stayed rangebound between AU $40-$53k
The last couple of weeks have seen Bitcoin continually stabilize around the AU $46.5k range, resulting in many experts proclaiming that the premier cryptocurrency may have finally 'bottomed out'. At press time, BTC is showcasing 24-hr gains of just under 1% and is trading at a price point of AU $45,600.
To get a better idea of what's causing Bitcoin to, for the lack of a better word, stagnate, Finder spoke with Jonathan Ovadia, Co-Founder and CEO of cryptocurrency trading platform Ovex. He too seems to be of the opinion that BTC may have found a local bottom around the all-important AU $46,500 resistance, adding:
"The cryptocurrency has particularly fluctuated from a low price point of US $32,770.68 to a high price of US $36,074.76 in the past week. The close price trend has shown that both buyers and sellers are indecisive on what the future holds. The regulatory strain on Bitcoin and the broader cryptocurrency ecosystem has still not clear with miners still migrating massively."
Ovadia further noted that even though Bitcoin may be going through an extremely rough patch at the moment, there is no denying that the currency is here is to stay. "It is clear that BTC has come to stay, and this will be shown in the long term when the coin retests a new price territory above US $70,000", he closed out by saying.
Market sentiment still in recovery mode
Despite Bitcoin repeatedly trying to retest the AU $54k support level over the last 30-odd days, it appears as though investor optimism in relation to the digital asset has not improved significantly. What this seems to suggest is that either investors are simply content with waiting out the current bear season or may looking to buy later — because they realize that they will remain in the red even if BTC hits a price target of AU $54k
To be a bit more specific, a quick look at the Bitcoin futures market premium — which serves as a tangible indicator of the rift that exists between the asset's long-term contracts and spot levels — shows us that the metric is currently hovering in the 'minus (negative) range'. Typically, this number tends to float around 5% - 15%.
Michael Saylor: "BTCs's volatility bound to disappoint"
In a recent sit-down with Northman Trader's Sven Hindrich, perennial crypto bull Michael Saylor shared his thoughts on the crypto market as well as the macroeconomic environment surrounding the world's largest cryptocurrency by total market capiltaization.
In his view, people investing in BTC with the mentality of day trading will always end up getting disappointed, especially as the currency continues to be faced with high levels of volatility. However, for those individuals who have understood the ramifications of all the incessant money printing that has been taking place globally over the past year, Saylor believes the volatility aspect can be ignored. "I'm looking at Bitcoin as the most distributed, strongest brand of a monetary asset in the world," he added.
Last but not least, as per a recent study that surveyed a group of BTC investors, 44% noted that they expect Bitcoin to dip below the AU $40k mark in the near term while 56% believe the currency will scale up beyond its previous all-time high of AU $93k and resume its bull run before the year closes out.
Disclosure: The author owns a range of cryptocurrencies at the time of writing