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Beware of price traps in the cryptocurrency market

Navigasi - The crypto asset market began to show positive movements until the middle of the second week of June 2022.

Beware of price traps in the cryptocurrency market
Beware of price traps in the cryptocurrency market

Launching the CoinMarketCap site on Wednesday (8/6/2022) at 10:00 WIB, the value of Bitcoin (BTC) has successfully grown 5.79 percent in the last day and is now at US$31,131. Meanwhile, the value of Ethereum (ETH) rose 5.46 percent to US $ 1,826 at the same time.

Other altcoins, the value of XRP, Dogecoin (DOGE) and Polkadot (DOT) compactly grew above 2 percent. In addition, Cardano (ADA) even managed to break through an increase of over 12 percent in the last 24 hours.

Tokocrypto trader Alvin wijaya said that one of the positive sentiments driving crypto's current performance was the submission of a bill (RUU) from two US Senators, Kirsten Gillibrand and Cynthia Lummis, regarding digital asset regulation. The bill implies that crypto investors support protection.

"The bill tries to address the biggest question that hangs over digital assets. This will answer the uncertainty that has made this young crypto asset sector more mature from a regulatory perspective in the US," Afid said as quoted from his official statement.

In addition, the Austin Consensus 2022 event which will be held on June 9-12 2022 in Texas, USA is also the main reason why market participants are looking towards a pullback. The event is planned to discuss the development of the crypto industry, blockchain, web3 to the metaverse.

Alvin also revealed that in the future the overall market will be in the direction of a pullback in the short term. Meanwhile, the medium term still looks sideways. The benchmark from Bitcoin is still most likely to be traded in the range of US$28,800 - US$32,000.

"Market sentiment is actually still being monitored as bearish. The reason is that the increase in the value of crypto assets is relatively stagnant or insignificant. It is strongly suspected that investors are still reluctant to buy, because they are not too confident in the crypto market," he said.

However, the analysis of digital asset investment firm, Two Prime, sees several investment management companies deliberately buying in the current market conditions, hoping that the price of crypto assets can break through its resistance level. They inevitably have to take strong price actions in order to gain profits during a bull market.

The negative sentiment that weighed on the market movement still came from the pessimistic factor of investors, namely the macroeconomic uncertainty going forward. The World Bank recently lowered its forecast for economic growth in 2022 from 4.9 percent to 2.1 percent. Meanwhile, the US Treasury Secretary, Janet Yellen, said before the US Senate that US inflation will continue to rise.