An interesting thing about the crypto market is that it has clear patterns. While you should never trust the price history, it is undeniable that some patterns are just too obvious and repetitive to be ignored completely. With Bitcoin slightly recovering at the beginning of this week, speculating about prices is just a way to entertain ourselves with possibilities that may or may not come true.
The crypto market has been following stock markets
It is interesting how the cryptocurrency market was moving together with stock prices. When stocks and indices were losing positions, the same happened to Bitcoin and Ethereum. However, the divergence is becoming apparent with the recent good performance of BTC against falling indices. Both NASDAQ and S&P 500 lost significant amounts of points while Bitcoin stabilized and even started gaining some ground. At the time of writing, BTC breached the $20K resistance level and seems to be preparing for a new bullish trend.
Last November, the price of BTC soared to the new ATH of $68K. While the glorious moment was short-lived, it showed that the asset has potential for gargantuan growth. The global recession did not spare anyone. All markets lost value and many investors decided to shift their attention to stable assets like precious metals and real estate leaving stock markets, securities, and crypto starving for cash.
(Advertisement)
CypherMind-HQ.com Artificial Intelligence Crypto Trading System – Get Ahead of the Curve with this sophisticated AI system! Harness the power of advanced algorithms and level up your crypto trading game with CypherMindHQ. Learn more today!
The crypto market has been experiencing the full force of the crypto winter since the beginning of the year. Just in two quarters, the whole industry lost over 60% of its value dipping below the $1 trillion threshold. However, it has since slightly recovered and now hovers above this value. Bitcoin is also doing surprisingly well compared to stocks.
The winter is coming and it is a good thing
Winters are good periods for crypto. Usually, during winter, all crypto assets are gaining momentum. November often indicates moments when new Bull Runs start. The technical indicator Hash Ribbons also suggests that we are very close to the bottom. The BUY signal occurred on August 19. Since then, mining efforts have been only growing.
