Aug 10 (newsonjapan.com) - A week in green could be a new change for Bitcoin Smarter; the strong wave of sales that have contributed to its valuation having decreased notably could be slowing down.
Some bullish signs are beginning that could generate a change in trend. Still, a position cannot be assumed if the digital market has not yet stabilized.
It is essential to assess the situation globally without letting emotions influence decision-making, although the indicators of fear and greed that are measured to determine the sentiments that the market is generating seem to improve since they went from extreme anxiety to just fear.
Influence of the next FOMC meeting on the digital market
The effects that the decisions taken by the FED have had on the digital financial market and the increase in inflation are aspects that have unfortunately penetrated the global valuation of cryptocurrencies, where many individuals and companies have been harmed.
It could be assumed that with the recent positive variation in the price of Bitcoin, the capitulation phase is closing, even more so that it is not out of the bearish stage; it is simply stopping the sale of cryptocurrency units, and this faucet when closing, contributes to the price of the same take another direction.
The capitulation stage led Bitcoin to touch almost $17,000, a reasonably negative price but one that many analysts had among their forecasts.
FOMC meeting is approaching at the end of July, and the impact of this is what many fear, not only in the digital financial market but also in the traditional one; the measures have affected the market globally.
It is expected that during this new meeting, they could discuss the progressive elimination of the extraordinary measures taken by the financial organizations of the North American country after the crisis that has been going through since the end of 2021.
The world economy has been affected by this set of decisions. However, many consider that tapering could take place, where the economy could cool down and, in turn, end the voracious inflation that leads the United States economy to a possible recession.
A career that could slow down again
Ups and downs are what have characterized the digital financial market so far this year; for many, it has been an endless race to obtain the desired benefits, some have fallen by the wayside and without a doubt, others are waiting for what approach.
Faced with a change in trend touching $23,000, Bitcoin could be close to ending so much cold in the digital financial market. Still, it also fits the speculations and forecasts that many economists have made, where this rise was expected to end. To go down reaching a floor and there, if you make the rebound, that will change the trend.
There is still a long way to go, and Bitcoin is just beginning to recover from a digital market fractured by massive layoffs and closures of exchange platforms; it is necessary to slow down and wait for a change in the trend without hasty decisions.
Entering the cryptocurrency market during this stage may not be the best financial strategy; it is time to hope that it will happen since everything points to an economic recession, and it is unknown how deep it may be.
Does Inflation Statistics Report Drive Bitcoin Price Up?
The tightening of monetary policies by the United States Federal Reserve has contributed to an accelerated inflationary index that seems not to end and unexpectedly brought adverse effects on cryptocurrencies.
At the moment, there is no glimpse of a good time for the economy, inflation continues to rise incessantly, and it is there that those in charge of the countries' finances usually begin to design strategies that allow at least to stop what could be triggered in a recession.
During the bearish phase, many investors have begun to store BTC, which could be influencing its price; beyond the inflation report, which is a fact that has affected cryptocurrencies in general, it seems not to be the leading cause of this new offset.
Conclusion
Since Bitcoin touched its last low of almost $17,800, it has started to have upward movements, which means that we could be going through the end of the capitulation phase. Still, many indicators also tend to point to this change in trend.
The cryptocurrency market, specifically Bitcoin, awaits the miners' response to this change since massive sales were generated by the miners that totaled 15,800 BTC. For more information, go to Bitcoin-Prime trading system
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