Now When Bitcoin (BTC) Price is Above $30,000, Has the Bear Market Ended or is it Just Another Dead Cat Bounce!
Bitcoin price was deeply impacted by the recent UST de-peg, as nearly 50K BTC flooded the markets. And hence the price began dropping extremely hard from the levels around $32,000 to as low as $26,600 in no time. The whales, traders, etc quickly jumped in and uplifted the price above $30,000 again. However, after a huge fall, it is been speculated whether the prices have flipped from the bottoms firmly or is it another dead cat bounce?
Bitcoin price flipped from the lows at around $26,600 and surged beyond $31,000 in less than 24 hours. Further, the prices are currently consolidating below $30,500 which raises speculation of the recent bounce is another ‘Dead Cat Bounce’. If the price ignites a bearish trend here, it may be unstoppable until it slices through the newly formed support at $26,600 and hit $25,500. However, at these levels, one can be expected a strong trend reversal as the prices may have dropped beyond the base prices of the institutions.
On the contrary, the markets seem to be healing and hence one can expect a sigh of relief at least for some time. However, the market remains largely volatile still and hence once cannot confirm a flip from the bearish trend until and unless BTC prices settled between $34,000 and $36,000 as said by a popular analyst.
We’re seeing relief and could see some more relief towards $34-$36K in the coming days/week for #Bitcoin. I don’t think we’re over & volatility remains high, but we’re seeing some slight corrections to the upside. — Michaël van de Poppe (@CryptoMichNL) May 13, 2022
However, the present scenario points out that the bulls may have entered the ring as Bitcoin raised by nearly 30% in the past 24 hours. Moreover, the asset which held and flipped from the crucial levels below $30,000 fuels the speculation of an incoming uptrend. If it happens, then the BTC price may easily achieve $32,700 and later $34,000. But whether this bounce will be capped and result in another dead cat bounce, needs to be closely monitored.Source