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Causes of a Strong Crypto Market

Navigasi - The movement of the crypto market seems to have recovered slightly or rebounded on Monday (20/6/2022), after being bloody at the end of last week. Bitcoin on Saturday had dropped below USD 20,000 (Rp 296.8 million) and dropped to USD 17,601 (Rp 261.2 million).

Causes of a Strong Crypto Market
Causes of a Strong Crypto Market

Tokocrypto trader Lek paijo explained that the decline puts Bitcoin below its all-time high low compared to December 2017's only USD 19,783. The rebound that occurred was caused by the oversold value of Bitcoin.

"According to the Relative Strength Index (RSI) on the weekly chart it appears that BTC is oversold, which means selling pressure is easing, so the price can rise again in the short term," Lek Paijo told us, Monday (20/6/2022).

Lek paijo said, investors seem to take advantage of the low trading volume on the weekends to buy the dip, just like what happened in the capital market. They decided to buy crypto assets at this time, for fear of waiting for a longer bullish phase, so they tried to take short profits.

“Bitcoin is still weak, but it's not clear where it will bottom. Technical analysis is not very useful at the moment, but fundamentals or macroeconomics can determine the direction of Bitcoin,” said Lek paijo.

Currently, investors remain anxious about high inflation, which hit a 40-year high in May, the continued economic fallout from Russia's invasion of Ukraine and the possibility of an escalating global recession.

“Negative sentiment also stems from concerns about the fragility of the crypto asset system. This emerged after the Celsius platform had stopped its withdrawals process plus rumors of debt default (insolvency) that hit the venture capital company, Three Arrows Capital, "explained Lek Paijo.