Bitcoin (BTC) enters into a strong consolidation, here we can count on an increase

Von Sophie Müller

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  • Bitcoin (BTC) enters into a strong consolidation zone, but old coins look weak.
  • Peter Schiff shares a scenario in which the Bitcoin Prize could flourish.

The world's largest cryptocurrency Bitcoin (BTC) has entered into a strong consolidation and is currently trading at around $ 39,000. At the time of printing, the Bitcoin price movement on the daily and weekly chart is less than 0.5 percent.

Bitcoin experienced a short short Squeeze this morning when trying to break over $ 40,000. The popular cryptoanalyst Lex Mozkovski calls it the mother of all consolidations. Referring to Glassnode data, he explains that a "record of 775,000 BTC changed owners at around $ 38.7.

On Monday before, Bitcoin came under pressure after reporting that the EU would prohibit all Proof-of-work (POW) cryptocurrencies. But the EU parliamentarians voted against the proposal and triggered a relieved sigh of relief among investors.

But the wider market perspective does not look quite good at this point. Kryptoanalyst Michaël van de Poppe explains:

old coins show great weakness again in the BTC couple because they fall. Bitcoin still consolidates. Not the best signs for the markets to be honest.

On the other side, Bitcoin long-term holder fill your base bags. Glassnode data show that " Long-term owners increase their credit with an annualized output rate of 7.6x. Class = "r-18U37IZ"> $ btc In grooved emissions this means around 6.840 Class = "CSS-901OAO CSS-16MY406 R-Poiln3 R-BCQEO R-QVUTC0"> move into the LTH-memory every day ".

Peter Schiff explains when Bitcoin can rise

In an unusual stand, the Bitcoin critic and gold fan Peter Schiff declared the Best Case Scenario to increase the Bitcoin price. Even if that now seems unusual. In one of his latest tweets, ship writes :

For Bitcoin Nasdaq climb and #gold has to go down. So that this happens #fed must be achieved to be reduced to 2 % without harming the economy, which requires minimal interest rate increases and large cuts in government spending. But why should you have Bitcoin in this scenario?

This seems to be a further dream for the time being, since the US inflation numbers are already increasing to almost 8 percent and reaching a four-decade high. The market is currently in a very critical situation. On the one hand, the FED has no choice but to increase the interest rate to control inflation.

The cryptom market largely follows the wider stock market. Many analysts say that we are heading for a kind of recession. So if that happens, the cryptom market could follow the correction on the global stock markets.

Although designed as an inflation protection, the crypto still has to prove itself. Extreme volatility has so far prevented Bitcoin from becoming a real alternative.


Source: Crypto-news-flash.com