ARKW - Bitcoin: Recovery Attempt Fails Summer Doldrums Loom (Technical Analysis)
2024-05-10 09:24:20 ET
Summary
- Bitcoin topped out in mid-March at USD 73,793 and has pulled back significantly since then.
- Bitcoin and Nasdaq are strongly correlated, hence expect both asset classes to grind lower during the seasonal rather weaker summer months into the typical bottom in September or October.
- Technically, it seems that Bitcoin is consolidating within a large cup-and-handle. The bottom could be found somewhere around the 38.2%-retracement at USD 51,500ish.
- Fundamentally, the collapsing yen is paving the way ahead towards more money printing and more chaos, which makes alternative assets like Bitcoin worth striving for.
Since nearly two months, Bitcoin ( BTC-USD ) is facing a price decline and the whole cryptocurrency market has seen a significant drop in prices. Bitcoin, which had surged to new all-time highs above USD 73,000 in early March, has now fallen back to around USD 61,500.