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3 March 2024
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Why bitcoin is not yet out of problems

Last Saturday both bitcoin (BTC) and almost the entire top 100 cryptocurrencies made a sudden sharp increase. Some claim that the crypto winter is finally over and that we are looking forward to nice times again. But is that really so?

Matti Greenspan, an experienced analyst at eToro says:

To be able to say definitively that the bear market is over, we need a strong outbreak above the main psychological barrier of $ 5,000. Despite the fact that the technical indicators are still bearish, the fundamentals continue to grow more strongly. The volume of crypto exchanges in the last 24 hours reached a new high of $ 25 billion on Friday and has since been well above the baseline of $ 15 billion.

And that outbreak above $ 5,000 certainly does not seem to happen in the short term. Given the ever lower lows and highs since last Saturday, we are still in a bear market. Whether we have reached the bottom is therefore impossible to say.

BitOoda, a company that engages in risk management in crypto trading, for example, predicts that the price will go a bit further:

Since the peak last Saturday, we see lower and higher lows, which is a characteristic of a bear market. Based on the silver price, among other things, we expect the price to eventually fall to somewhere mid or high in the $ 2000s. Only then will the market start to recover.

It is therefore clear that we are not in a bull market for a long time yet. Many crypto investors are waiting for the moment that the first bitcoin ETF is approved by the SEC, which would cause a huge influx of new money. However, it is unlikely that the SEC will adopt a bitcoin ETF this year.

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