The crypto space has been under intense pressure for a strong rebound ever since the bearish trend began in late 2021. Meanwhile, Bitcoin and the other asset have been trading above their respective support levels, manifesting the possibility of a rebound.
However, while the markets are trading within an accumulation & sideways, what results may be expected at the end of this phase?
In the recent past, external factors have largely impacted the crypto markets specifically Bitcoin price. Whether it may be the revised inflation rates, or any speech done by the Fed Chair, the growing strength of the USD in the international market, etc.
Also Read: Massive Selling Pressure on Bitcoin Delayed for a While, Will BTC Price now Make it Above $25,000?
Therefore, as per a couple of market analysts, the star crypto is swinging within an accumulation phase and soon may draw some conclusions. However, the direction of the conclusion depends on, which of the below-mentioned possibility will come true!
- The USD’s DXY Index May Continue Surging
The strength of the USD is currently coiling up significantly, marking the levels after 20 long years. Currently, the Index is hovering along the resistance manifesting the possibility of surging high for the next 10 to 12 months.
- The Crypto Space May Remain Within the Bear Market
The markets have been within the bearish impact for the past 8 months and constantly failed to rebound, whenever a recovery was ignited. Now while the BTC price is swinging in & out of $20,000, displaying a huge possibility of breaking down the support soon. While the year 2022 is expected to be bearish, the entire crypto space may remain bearish for another 15 to 16 months.
The crypto space nowadays have been largely getting impacted by each of the Fed’s move. Every month while the FED revises & announces the new rates, the stock markets and the crypto markets are inversely impacted. Therefore, if Fed stops playing with the rates, then a stable trend may be expected with the Bitcoin price
- A Sense of Fear May Prevail for Long
The current trend of the market is pretty bearish and hence the Bitcoin bulls and Whales have set them apart for a while. While the current accumulation continues, the fear among the investors may intensify and remain for a long. This will impact the liquidity coming onto your platform.
In the final thought, the crypto space continues to swing within a narrow trend within a misty environment. Therefore, the upcoming monthly close may be extremely crucial for most of the assets as it may mark the beginning of the upcoming trend ahead.
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Source: https://coinpedia.org/price-analysis/markets-may-close-being-within-an-accumulation-trading-sideways-what-may-be-the-result-of-this-move/