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  • By The Financial District

Crypto Investors May Have To Wait For A Year To See A Bitcoin Rebound

If you are anticipating a bitcoin rebound, you may have to wait months. According to Lisa Pauline Mattackal and Medha Singh's article for Reuters (July 19, 2022), this is the conclusion reached by a number of technical specialists searching for order in the chaos.

Photo Insert: Bitcoin has been basically stationary for almost a month, hanging near the 200-week moving average.

Bitcoin's decline since May, precipitated by economic anxiety, has sent it below its 200-week and 200-day moving averages, which are respectively $22,600 and $35,000. It has been basically stationary for almost a month, hanging near the 200-week moving average.

Valkyrie Investments, for example, claims that their analysis indicates an upward rise, but that the timing is uncertain.

"Historically, we've accumulated (around the 200-week average) for three to six months," said Josh Olszewicz, head of research at Valkyrie, in reference to a period of sideways trading preceding an upward price break.

Bitcoin spent nearly three months between late 2018 and early 2019 straddling the 200-week moving average. Olszewicz noted that under a more pessimistic scenario, a bitcoin rally may not occur for about a year.

Market & economy: Market economist in suit and tie reading reports and analysing charts in the office located in the financial district.

In theory, moving averages smooth out wild price swings in order to clean up the signal. Traders utilize longer-term averages to determine the next levels of support and resistance. Nevertheless, chart analysis based on previous price patterns is not a perfect science, especially when it comes to the short, volatile history of cryptocurrencies.

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