Cryptocurrency some of their analysts in their latest statements of bitcoin He evaluated his last sluggish rally and talked about its potential.
BTC finished the week at $27,887, up 3.9 percent, despite a brief drop after the Fed meeting, according to Coin Metrics. Coin Metrics evaluates the week from Friday to the next Friday.
Analysts Evaluate Bitcoin Rally
“Not only have cryptocurrencies outperformed other risk assets recently, but the stress in the traditional financial system has fueled increased interest in decentralized finance,” Citi said in a note this week.
In the crypto market, we have seen an increase in search interest for BTC spot and futures volumes, as well as decentralized exchange volumes in general. Considering this week’s dovish FOMC meeting, interest in crypto is likely to continue as the market questions whether the Fed can contain inflation.”
“Bitcoin particularly benefits from the ‘digital gold’ rhetoric,” Citi analyst Alkesh Shah said in a separate report.
Shah stated that Bitcoin’s stock market net inflows were at the highest level of the year and 8.2 times larger than the previous week, and individual investors led this month’s rally.
In addition to the entries, “strengthening average daily trading volume indicates profits,” Shah said, “but sales from miners, mid-term bitcoin holders (bought 6 months to 2 years ago) and 10 BTC+ holders may indicate that the rally led by individual investors is waning. shows,” he said.
Shah said that although investors have stepped aside, increased turmoil in the market could increase Bitcoin volatility.
Citi said that BTC’s correlation with equities is “collapsing”, while its correlation with gold is rising.
Macro strategist and “Signal vs. Noise,” said Joe Orsini, that Bitcoin is “an asset that literally serves the purpose of not needing a bank.”
Orsini added that gold and BTC both benefit from quantitative easing. “Although Bitcoin’s rally has been stretched out a bit and weakened, the 200-day moving average currently jumping by 40% underlines the strength of the trend,” he said.
The next resistance comes around $32,000, which marks a consolidation range from May 2022, according to Oppenheimer’s Ari Wald. “Although the trend is recovering after last year’s decline, it probably won’t be a straight line and trading will remain volatile,” Wald said.
*Not investment advice.
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