Analysts wondering if the bearish phase for the number one cryptocurrency is over
- Bitcoin achieved ten consecutive daily increases from July 21 through Friday
- It is the longest winning streak since 2013
- BTC winning streak is proving predictions wrong
Analysts are hoping that the worst bearish phase of Bitcoin value is over. However, stiff resistance is being exerted in the low $40,000 range and preventing the analysts to clearly say that the bearish phase for the number one cryptocurrency is over.
The last few months have been challenging for Bitcoin, and now it is suddenly earning laurels in the cryptocurrency market.
BTC prices are holding above $41,000, and it is also the highest since May. The cryptocoin has been on a winning streak for the last ten days, and it has been the longest in eight years for the most prominent cryptocurrency.
BTC was last changing hand at $41,344, representing a rise of 6.2% over the past 24 hours. Other digital currencies were also among the positive gainers, with ether (ETH, +4.37%) (ETH) rising 4.5% to $2,453 and chainlink (LINK, +11.06%) (LINK) jumping 13% to $21.72.
BTC notched its longest winning streak since October 2013
Bitcoin prices, however, slipped after 0:00 coordinated universal time (UTC) on Saturday. Nonetheless, it had achieved ten consecutive daily increases from July 21 through Friday, the longest winning streak since 2013. BTC started slipping after notching its longest winning streak since October 2013 on Saturday.
BTC had reached an enviable $65,000 in mid-April as market euphoria peaked and the U.S. exchange Coinbase went public through a direct stock listing. After that, however, a series of cataclysmic events in quick succession led to a steep tanking of Bitcoin values. First, China came down with a heavy hand on Crypto-mining, and this was followed by exchanges and regulators around the world moving to tighten industry rules.
The Federal Reserve also started moves to taper the $120 billion-a-month of asset purchases. It was a form of extreme monetary stimulus during the COVID-19 pandemic. It has been a significant driver of the investment narrative that bitcoin could effectively hedge against inflation and currency debasement.
Retail investors who had invested heavily into Bitcoin as the prices soared earlier in 2021 started to withdraw their money. However, the big guns like institutional investors remained shy from jumping into the market at lofty valuations. Prices traded in a range between $30,000 and $40,000 for about two months.
Bitcoin remained briefly below $30,000 on July 20. However, after that, the cryptocurrency has been steadily ascending in value and gained 18% in July. It was the first increase in three months.
BTC winning streak is surprising, according to experts
FUD is an acronym for “fear, uncertainty, and doubt,” a term often used by crypto investors to refer to negative news. The current state of Bitcoin can serve as an excellent example of FUD. However, BTC’s winning streak is surprising, according to Mati Greenspan, founder of the cryptocurrency and foreign exchange analysis firm Quantum Economics.
The price resistance in the low-$40,000 range is still very stiff according to digital-asset firm Eqonex BTC is potentially range bound until it breaks and closes above $42,000. As a result, trendline support has moved up to $38,200, with $36,500 the following support.
However, industry analysts are wondering if the worst for Bitcoin’s bearish phase is over. On a year-to-date basis, bitcoin is up 43%, significantly outperforming the 17% year-to-date gain in the Standard & Poor’s 500 Index.