The green weekly candlestick does not cause sentiment to change immediately, as there is still extreme anxiety. Saylor considers that the crypto market turmoil will accelerate a long-awaited regulation on crypto assets.
Bitcoin (BTC) and Ether (ETH) experienced a 5% jump in their prices compared to June 6th. In that way, they entered an upside correction that took the value of BTC from below USD 30,000 to above USD 31,500. That gave investors hope of a long-awaited market recovery following a brutal sell-off in May.
Although the rallies were so weak that the price dropped again, it was the first weekly green candlestick in ten weeks.
The Worst Seems to Be over for Bitcoin
Bitcoin finally broke that negative trend after nine consecutive weeks of closing to the downside. In that way, it marked its first weekly green candlestick since the end of March.
After ten weeks, the first green weekly candlestick does not cause sentiment to change immediately. Emotions still score 15/100 on the fear and greed index, indicating extreme anxiety territory.
However, that extreme fear may reflect the general sentiment in financial markets worldwide. No one knows how far central banks want to go to control inflation.
The Optimistic Outlook of the CEO of MicroStrategy
Since the all-time high in November 2021, the overall crypto market has continuously experienced turmoil. Even altcoins like Terra (LUNA) collapsed by more than 1000% within 24 hours.
However, Michael Saylor, the CEO of MicroStrategy, considers that the crypto market turmoil is excellent for Bitcoin.
The billionaire businessman thinks that this crypto crisis will be great for Bitcoin. He said it would accelerate a long-awaited regulation on stablecoins, altcoins, and exchanges.
In addition, he said it was necessary to break the political stalemate. He explained the world had become more aware of the differences between Bitcoin and security tokens. He said this would make it easier for leading institutions to enter the space.
JPMorgan Considers There Is Long-Term Optimism about Bitcoin
Despite the drop of cryptocurrencies and extremely weak rallies, investment bank JPMorgan says that Bitcoin is a significantly undervalued asset.
Keeping its estimate of the fair value of Bitcoin at USD 38,000, the bank reiterated its assessment of the asset in February. The cryptocurrency was trading at around USD 43,400, about 28% higher than its current level.
The Best Time to Take Profits, Thanks to the Volatility of BTC
The Bitcoin market will remain volatile for some time, but the best investment method can turn that disadvantage into a tool for profit.
For example, BTC futures trading allows traders to go long or short on the price of the pioneering cryptocurrency. In that way, they can earn money as long as their predictions are correct.
On their part, spot traders only receive a profit when the value of Bitcoin rises. Traders can borrow leverage from exchanges to increase their purchasing power, thus multiplying their earnings.
A trader opens a short position of 100 BTC at USD 32,000 with a 100x leverage. If the price drops to USD 29,000, he will make a profit of USD 3,000. That means that 100 BTC/USD 29,000 is equivalent to 10.3 BTC, while the margin needed is only 1 BTC.
By Alexander Salazar
