Cryptocurrencies find some support for a bounce after one of the toughest weeks for investors.
Although last Thursday we told you how Bitcoin had recovered the level of 41,000 dollars. The joy for investors was short-lived, as not long after, the asset returned to visit lows. Marking what at the moment appears to be a double bottom.
Following the confirmation of the Wyckoff distribution pattern, Bitcoin plunged to $ 30,000 in one of the worst weeks on record in the world of cryptocurrencies. The speed with which the falls occurred did not leave anyone indifferent.
To this, a multitude of very negative news for the sector have been added in recent days. The prohibitions of Chinese institutions towards cryptocurrencies and their mining, as well as the closure of some activities in the country, have been the perfect excuse to lead the majority of assets to suffer devastating falls.
As we can see, many projects have lost more than 80% of their value in less than a month or even less than a week. And as usually happens after an event of this magnitude, the rebound, although it has been expected, has come with strong rises for some assets.
It should be noted the case of MATIC, which has almost doubled in value since it found minimums around 75 cents on the dollar.
While many are “buying the dip” by raising the price of assets, many other investors are still very cautious and prefer to wait to see how the market behaves in the coming weeks to make a decision. The fear of the beginning of a new bear market is very present and the fear indices in the markets are at their highest.
Time will tell if we are facing a new market trap or if we will have a recovery over the next few months.