Bitcoin is undergoing a short-term bearish trend, defined by the declining highs of the last month. Technical analysts believe that the medium-term outlook continues to be bullish for the pioneering cryptocurrency.
Bitcoin (BTC) is trading at around USD 49,504 and has accumulated a profit of 2% in the last 24 hours. Despite that, its recent behavior suggests a consolidation in the short-term support at USD 46,000 while resistance remains between USD 53,000 and USD 56,000.
Meanwhile, Ether (ETH) is trading at around USD 4,058 and accumulated a profit of 0.7% in the last 24 hours. Other altcoins with the highest market capitalization trading lower include Polkadot (DOT), XRP, Solana (SOL), and Cardano (ADA).
Analysts Consider the Medium-Term Outlook of Bitcoin Is Bullish
The pioneering cryptocurrency is showing a short-term downward trend, which the declining highs of the last month have defined. Market analyst Craig Erlam noted that the next test is around USD 53,500 if it stays above USD 50,000. He explained that a move above that level would leave it in a much stronger position, marking the end of the correction.
However, analysts are optimistic since technical indicators seem oversold and altcoins show some signs of a rebound. In the case of Ether, it has lost around 10% during the recent market correction. Meanwhile, the total capitalization of the crypto market is still around USD 2.36 trillion.
The fear gripping the financial markets in recent weeks has affected the interest in cryptocurrencies. The slowdown in the US economy and fears of the COVID-19 Omicron variant are the primary reasons for that situation. Experts say that Bitcoin has behaved more like a risk value than a safe haven, causing it to fall alongside altcoins.
Technical analysts consider that the medium-term outlook is still bullish for the first cryptocurrency in the market. However, a survey that financial firm Natixis conducted among 500 institutional investors indicates that this type of investment is the leading candidate for a significant correction. The participants in the study included four central banks, over 20 sovereign wealth funds, and more than 150 corporate pension plans.
The Prediction by Robert Kiyosaki about Bitcoin
Robert Kiyosaki, the author of Rich Dad Poor Dad, warned investors to prepare for a sharp market crash. The finance guru stated that this is the best time to become rich, but nobody knows when it will end.
He predicted a possible global economic crisis in which the price of gold, silver, Bitcoin, and property would plummet. When he told his Twitter followers to invest in those assets, investor Michael Burry warned that speculation had reached all-time highs.
The inflation levels in the valuation of companies are outpacing those of the dot-com bubble. The owner of the Scion Asset Management fund expressed concern about the crisis.
Renowned investor Jeremy Grantham commented that nobody had seen anything like this before. The co-founder of GMO explained that a 6.2% rise in the consumer price index would have been enough to bring the market down in 1925.
In the case of Kiyosaki, he knows that Bitcoin is going through a correction from which it will eventually recover. It is a matter of time before its price reaches and exceeds its previous all-time highs.
By Alexander Salazar
