Over the weekend, bitcoin has managed to cross the $41,000 threshold but rapidly rising interest rates make the waters very choppy. With the markets set to focus on Federal Reserve chairman Jerome Powell and Fed Governor Lael Brainard’s hearings this week, analysts have crossed their fingers.
Spot volume was thin over the weekend. Following a bloodbath last week, the crypto market looks bullish. BTC is leading cryptocurrencies towards a small recovery.
At the time of writing this article, bitcoin is up by 0.25% in the last 24-hours and is priced at $42,000. Ethereum is also up by 0.95% but shy of its $4,000 mark. Ether stands at $3,168. The high volatility of cryptocurrencies adds to the unpredictability of the markets.
Peter Brandt, a veteran trader, believes “never add to a losing trade” is a sacred trading rule. He gave the example of 1980 when Silver topped at $50 and sank to a low of $3.65 and didn’t get up until 24 years later. Brandt said he is not saying that bitcoin is the same but highlighted never add to a losing trade.
Since the advent of 2022, BTC has fallen significantly. It has lost 10% in the past seven days. The veteran trader said when circumstances change, predictions also must change. Brandt pointed out that the parabola might not be the driving force in bitcoin.
Analysts say BTC, over the long-term, is quite vulnerable to further selling. But with the political situation in Kazakhstan improving and bitcoin mining to normalcy, the market is looking brighter.