BTC has had a long period of downside. The downside has lasted over three months. On Feb 16, BTC stayed above $44,000. This has given rise to the hope that another long spell of downside need not repeat.
Market data holds out further reasons for optimism since BTC/USD is bouncing back. Over the last 24 hours BTC had fallen to $43,725.
The variation is limited to a very narrow range. The market expects the pair to surge in either direction – either up or down. Both, the support and resistance levels, all through Wednesday, stayed very close to the spot level.
Analysts who follow the market closely, aver that any effect on the stock market will also impact the bears. However, the analysts also feel that after the very extended downside there is not much motivation to sell BTC.
BTC HODLers have had a torrid time in 2021. Together with this, factoring in all else that happened – the $33,000 scare, FUD priced in, etc leads one to question if there is anybody left to sell? Many coins saw movement over three to six months ago.
Under such market conditions, the retail investors are normally in the wait and watch mode. They will wait for BTC to rise again to its previous highs before they commit to some activity.
The buyers who were smart and the whales who bought when BTC was selling at $35,000 will make a windfall by tripling their investments. This is possible if BTC touches $100,000.
BTC has now made a small recovery. However, according to available data interest still remains tepid.