Bitfinex analysts reminded investors in an interview yesterday (24) that Bitcoin’s current rebound cannot confirm the end of the long-term downward trend, and we still need to observe whether Bitcoin can break through the relative high of US$65,200 on August 25.
After a brief drop to $62,700 at 22:00 last night, Bitcoin rebounded again and reached a high of $64,698 around 7:00 this morning (25), and it seems that it will soon challenge the $65,000 mark.
Currently, Bitcoin has fallen back slightly and is trading at $64,198 at the time of writing, up 1.98% in the past 24 hours.
Bitfinex Analyst: Bitcoin's Key Resistance Level Is $65,200
Regarding the future trend of Bitcoin, Bitfinex exchange analysts reminded investors in an interview yesterday (24) that the current rebound cannot confirm the end of the long-term downward trend, and we still need to continue to observe whether Bitcoin can break through the relative high of $65,200 on August 25:
Bitcoin would need to break above the August high of $65,200 to confirm the end of the long-term downtrend.
Currently, Bitcoin is very close to this resistance level. The reason why this point is important is that Bitcoin has been in a downward trend since it hit an all-time high of $73,666 on March 14 this year; and the $65,200 level was a high point before the decline in early September. Once this position is broken, it means that the bottom is officially formed.
Bitcoin has been on a downward trend since March
However, the analyst went on to add that Bitcoin’s trend may still tend to consolidate in the short term, as buying power seems to have weakened recently:
It is entirely possible that Bitcoin will form a new consolidation range at the current price and oscillate for a while.
As we have observed before, the previous price increase was driven by spot buying, followed by the contract and futures markets, but spot buying has slowed down and spot trading volumes will become more moderate once prices break through $63,500.
All four major U.S. stock indexes rose
The People's Bank of China proposed three major policies yesterday to boost the sluggish economy. A-shares and Hong Kong stocks jumped across the board. Last night, the share prices of Chinese companies listed in the United States also saw a surge. Coupled with investors' optimism about interest rate cuts, U.S. stocks closed higher on the 24th, with the Dow Jones and S&P 500 indexes closing at record highs.
The Dow Jones Industrial Average rose 83.57 points, or 0.20%, to close at 42,208.22, setting a new high for the fourth consecutive trading day.
The S&P 500 index rose 14.36 points, or 0.25%, to close at 5732.93.
The Nasdaq Composite Index rose 100.25 points, or 0.56%, to close at 18074.52.
The Philadelphia Semiconductor Index rose 65.97 points, or 1.31%, to close at 5091.78 points.
Matrixport: Bitcoin volatility is expected to continue to decline
In addition, Matrixport also released its latest research report on Twitter yesterday, saying that the price of Bitcoin has basically maintained a fluctuation range of 20% in the past 18 months. With the launch of Bitcoin ETF related options and the participation of institutional participants, the volatility of Bitcoin will be further compressed. Therefore, it is recommended that investors adopt a strategy of selling volatility to obtain additional benefits:
While Bitcoin is inherently volatile, the 30-day rolling return shows that its price has remained largely within a ± 20% range over the past 18 months. We expect volatility to decrease further, so we recommend a selling option strategy in early 2023, including selling out-of-the-money puts and calls, to generate additional returns.
Even though this strategy may incur losses, it still performs well overall as volatility declines overall. With the launch of options related to Bitcoin ETFs, more institutional participants are expected to enter the market, further compressing volatility.
Therefore, selling volatility remains a viable strategy that allows Bitcoin holders to gain additional returns.
