A well-known analyst of TradingView Trade_lab explained when and why it is worth buying bitcoin now and named the points at which you can make a profit.
The opinions of experts may not coincide with your position. We do not give investment advice, the material is published solely for informational purposes. Cryptocurrency is a volatile asset that can lead to financial losses.
The cryptocurrency market in general, and bitcoin in particular, have been under pressure for seven weeks in a row, since the formation of local highs in March of this year. The meeting of the US Federal Reserve on May 4, at which a softer position of the department was announced than expected, had a short-term impact on the increase in quotations of risky assets, after which the decline continued.
Given many indicators, including the fear and greed index, which is at the lowest values of this year, it is very likely that the market is oversold. As a denouement of the downward movement, one can point to the rapid decline of the previous days by testing the lows of last summer, from where the development of the wave of the upward trend was observed. Altcoins were under impressive pressure at all, especially the LUNA cryptocurrency, whose project's stablecoin lost its UST-USD binding at the moment.
As a potential rebound from strong support for BTCUSDT, we can single out the area of $ 39-40 thousand, which corresponds to the 0.5 Fibonacci level of the trading range.
It makes sense to consider a deal to buy bitcoin in the current support zone.
Among the negative factors, we can note the likelihood of a further decline in the US stock index SP500, due to the impending cycle of tightening the monetary policy of the US Federal Reserve. Given the correlation of the cryptocurrency market with key stock indices, this fact may serve as a cancellation of the scenario under consideration.