Bitcoin’s biggest crash in history is over, what’s next?
The recent Bitcoin crash has been the largest in history, coming in at $2.56 billion. The “corona crash” last March 2020 was the previous biggest, at approximately $1.38 billion. This year’s price is the massive crash in Bitcoin history.
Even though 13% gains yesterday has brought some relief, there is still some uncertainty.
The question circulating is:
Sentiments about the massive crash are still Raw
The events from the past few days show that Bitcoin is not immune to FUD. Although this period has been a painful experience for some. However, the biggest fear is that the crash from last Wednesday indicated the end of the bull run.
A reading of 22 on the Fear and Greed Index indicates that some nerves are still raw with a lot of fear.
This is an improvement over yesterday’s level of 10. But to assume that the market is still cautious can be an understatement.
Bitcoin is currently lower than the 200-day moving average, it indicates that bears are still superior despite the relief rally recently. A closer step to the 200-day moving average is needed to mend fears that the bull market is at its end.
Bitcoin tries to build on the recent gains and work its way towards the 200-day moving average. But it is still soon to say that the bull cycle is intact, unless it happens.
What’s next for Bitcoin?
A lot of analysts are still giving their opinion about this. Tom Lee, the founder of Fundstrat Global Advisors, stated that volatility is the nature of Bitcoin. He holds his pre-crash price prediction of $100k by the end of the year.
In the same manner, PlanB sought to reassure crypto enthusiasts by stating that his S2F and S2FX models show that the bull market is still intact.
His analysis shows that Bitcoin is on track to hit $100k per S2F model or $288k per S2FX model.
S2F is a statistical analysis model that observes the effect of scarcity on the Bitcoin price. Some critics argue that scarcity is not only the driver of price.
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