Analyst: The Bitcoin market is currently in the triangle consolidation stage and has not yet chosen a direction
On January 21st, Deutsche Bank conducted a survey of 627 institutional professionals last week. 89% of the respondents believed that the current asset prices in the financial market were in a bubble, and pointed out that Bitcoin and US stock technology stocks are The biggest asset of the bubble.
“Respondents believe that Bitcoin and Tesla are much more likely to fall this year than to rise. When asked about the trend of these two assets in the next 12 months, they believe that these two assets are relatively doubled. The future trend is more likely to be cut in half.”
Judging from the recent market performance of Bitcoin, since it hit a record high of US$41,900 on the 8th of this month, the asset has performed weakly. After three tests of the US$40,000 mark, it quickly retreated. It has now traded sideways between US$36,000 and US$40,000 for more than a week.
CyberX analyst Kang Lvzhi believes that Bitcoin has seen greater volatility after it topped $40,000. This is mainly due to the continuous increase in the price of the currency in the previous period and the accumulation of a large number of profit opportunities in the market. These profit-making chips have repeatedly hit new highs in the market. There will be a certain degree of differentiation in the market.
“It’s reasonable to have a profit closing situation. After all, compared to other markets, the profits generated by this round of Bitcoin’s rise are beyond imagination. Therefore, after breaking through 40,000, the market’s long-aggregated profit closing sentiment It broke out and this wave of sharp corrections occurred. This correction will cause the chips to change hands sharply. After the shocks, the chips will be concentrated again and the market will re-select the direction.”
Compared with the pessimistic attitude of professional institutions, Kang Luzhi said that under the influence of various factors such as halving of production, central bank release, institutional absorption and other factors, Bitcoin will start a bull market beyond imagination. However, this bull market will not emerge from a wave of unimaginable main rises overnight, but it will not suddenly peak.
“The current market correction is also one of the characteristics of the Bitcoin market, that is, compared with other financial markets, the transparency of Bitcoin’s chips is not high. Although institutions continue to enter the market, the transparent chips in the hands of institutions cannot be controlled. In the Bitcoin market, Bitcoin can still fluctuate sharply, which shows that the market maturity of Bitcoin is not as high as expected. The concentration of chips is not high, and other factors such as opaque chips on the side of the market, the trend and The trend has become more random and unpredictable.”
According to Bitcoin’s trend, it is currently in the triangle consolidation stage and has not yet clearly chosen its direction. “Bitcoin is testing the 25-day moving average. Once it drops below 34,000 US dollars, it may continue to fall to 32,000 US dollars. However, the market is still hesitating, and the 25-day moving average is still supporting. Investors are advised to be more patient and pay attention to positions Management, risk control, waiting for the market to choose the direction.”