A breath of fresh air seems to be blowing through the cryptocurrency markets this week. Bitcoin (BTC) is approaching $22,000, and Ether (ETH) is also advancing. Will the trend continue? We interviewed the analyst Prof Chain.

Bitcoin (BTC) soon to $22,000?

In the middle of the bear market, the price of Bitcoin (BTC) has for weeks chained closings in the red, raising fears of an even more substantial fall in the largest cryptocurrency. This week, however, the Queen of cryptocurrencies seems to have regained some strength. It shows +11% over the last seven days, and is approaching the threshold of 22,000 dollars , briefly touched during the night:

Bitcoin BTC price

BTC is up +21% since the start of July

At Ethereum (ETH) , the progression is even more marked. Ether is showing +17% over the last seven days , and is approaching the threshold of 1,250 dollars. The other major cryptocurrencies also showed clear increases over the week, with +11% for Binance’s BNB and +12% for Solana’s SOL .

Sign of this progress, the total capitalization of cryptocurrencies exceeded 1,000 billion dollars overnight, before falling slightly:

Progression of total cryptocurrency capitalization

Progression of the total capitalization of cryptocurrencies over 24 hours

A trend that will last?

Hence a legitimate question: will the prices of Bitcoin and other cryptocurrencies finally go up for a long time? For Prof Chaîne, on-chain analyst at Cryptoast, the pump is due to several factors:

“Liquidity is falling on exchanges, and we are also seeing strong demand due to current price levels. Added to this are more than $200 million in short position liquidations. This combines to create a slight pump for BTC . »

However, we remain on a short-term vision on the part of market participants:

“In the short term, the market is making slight profits and the number of entities in profit on the chain is going up slightly. For the moment, the number of participants taking advantage of this rise to sell close to their break-even point and exit the market is very limited. Instead, we are seeing a buying phase following the recent rally . »

So what can we expect? For Prof Chaîne, it is unlikely that participants will take advantage of this recovery to exit the market. As we have seen in recent weeks, the “strong hands” have stood out for their solidity in the face of considerable selling pressure:

“The scenario of a new dead cat bounce (where participants sell a short-term upside during a bearish cycle to exit the market) is not the most likely but cannot be ruled out . »

Caution is therefore still in order. with some traders setting the key threshold for Bitcoin at $23,000:

The question therefore persists: has the BTC touched its “bottom”? Given the broader conditions surrounding the market, we need to remain measured in the face of this more positive week for prices.

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