Cryptoverse: Will the Bitcoin summer be mild

Cryptoverse: Will the Bitcoin summer be mild 

Here we ask the question: Will the summer of cryptocurrencies be mild or hot, and can Bitcoin recover its activity again.

If we look at the trading volume in the past two months, we find the largest currency Bitcoin has lost a third of its value.

Bitcoin's finite history isn't much evidence of crypto summers, which we define as a short-lived uptrend of two months or more.

Cryptoverse: Will the Bitcoin summer be mild

During the past five years, especially if we track prices in the summer, we find typical prices for the bitcoin currency, the event of a rise or fall of the bitcoin currency by 20% to 30%. For example, the price of Bitcoin in the summer of 2017 ranges from $ 2548.00 to $4,334.00, and if we turn to the summer of 2021, it ranges from $35487.00 to $ 45,171.00. Therefore, we expect that the price of Bitcoin this summer will range between $ 29 thousand to $ 36 thousand.

There is no doubt that the broad foundation is a long path to the consolidation of an asset class that is currently considered volatile and risky - in addition to being vulnerable to a wave of inflation. As price pressures around the world and international affairs bring US stocks closer to confirming a bear market, cryptocurrencies are not on anyone's shopping list.

However, we hope that the summer of cryptocurrencies, and especially Bitcoin is mild, there are some indications that the crypto king is planning a comeback.

Bitcoin derives its market strength from cryptocurrencies, for example, upon the collapse of its TerraUSD coin in early May, investors fled to somewhat stable altcoins such as Bitcoin.

Bitcoin dominates the cryptocurrency market, and as a measure of the market value of the rest of the cryptocurrency markets, it jumped to a seven-month high of more than 45% even as its price fell.

"Institutional investors particularly are fleeing to safety, to a certain extent, to bitcoin, which has the most institutional adoption," said Marcus Sotiriou, an analyst at UK-based asset broker GlobalBlock.

Last week, CFTC data showed that Bitcoin futures witnessed their largest net long position since the contract was launched in 2018, an indication that traders are looking at the cryptocurrency's price rise.

Fear and greed

Scary times.

Bitcoin has halved its value since the November 10 peak at $69,000. This week, it is still about to jump above $30K, after touching a 17-month low of $28942 on May 12. It remains one of the largest digital assets by market capitalization, but the market cap of all cryptocurrencies is now at $1.3 trillion, less than half of the $3 trillion peaks in November.

Bitcoin Fear & Greed, data platform Coinglass index of market sentiment - where 0 indicates extreme fear and 100 indicates extreme greed - is hovering at 13.

Ether, the second token by market capitalization, is trying to jump off the $1,950 price and is down nearly 65% from the $4,818 peak on November 10.

Here we warn, that staying at the near level between $2000 to $2500 without rising above that, will be a downside signal.

The crypto market is cowed.

On Monday, the market capitalization of digital currencies rose by nearly $30 billion to reach $1.31 trillion, coinciding with the fluctuating prices of Bitcoin, Ethereum, and other major currencies on the upside.

We always remind you not to put your eggs in one basket, so keep your crypto money at no more than 5%.

Attention Thursday and Friday

Here is our assessment of the price of Bitcoin:

Therefore, the positive movement can last until Thursday-Friday because it is the expiration date of the options, which are mostly put options. On the other hand, according to the report of the Federal Reserve of the United States of America, 12 percent of American households invest in cryptocurrency and consider it an investment vehicle. After this report, Wall Street banks' appetite must have increased even more. Technically, Bitcoin has not been able to break out of the $28K-600-30K-700 range, but it continues on its horizontal trajectory.”

Lots of questions send us what should we do with our cryptocurrencies - simply hold on to your precious life, don't look back, and move on.

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