Bitcoin has navigated some truly muddy waters over the past year, with prices plummeting severely, leaving many investors struggling in the aftermath. However, January 2023 brought renewed hope as values began climbing back up for the first time in many months. But the new regulatory pressures caught up with the market, which started to experience challenges yet again. While prices are more elevated than during their slump at the end of the last year, they have stagnated for quite some time.
The main reason is the low liquidity, but the increased push for regulations is also to blame. Regardless, investors remain devoted to adding digital tokens to their portfolios. Many are looking to buy Bitcoin with debit cards and analyzing the historical price charts to get a more solid idea of what they can expect from the market in the near future.
Reclaiming 30k
Throughout 2023, Bitcoin briefly achieved the $30,000 milestone before dipping back again. Since then, it has fluctuated in the 27 to 28k area without climbing again. However, many believe this is bound to change sooner rather than later. Over the past thirty days, it has only dropped by 2%, showing that it remains relatively stable. This has been a much-needed break for investors following the movements of the past year.
So, while the upcoming rally might not be for the long term, a rise in the price point would signify consolidation within the bearish market. Recently, a large exchange recorded a significant Bitcoin sale of no fewer than 16,000 coins. Many believed this would bring forward breaking news, but the investors’ wishes haven’t yet materialized. Some have expressed the view that no big event making the news is good news, as such a massive sale effort is unlikely to do any good for the price.
Lobbying deficit
Ethical lobbying is one of the most fundamental things helping businesses and organizations thrive and develop. It helps further the decision-making process and helps many individuals and enterprises express their views. Their agreement or opposition improves the outcomes for the entire community by encouraging dialogue among representatives.
The industries that spend the most in lobbying in the US include healthcare, energy, finance and real estate. Only during the first quarter of this year over $1 billion was spent at the federal level. This is comparable to 2022 when the overall amount was $4.1 in lobbying efforts. So, where does crypto find itself in these figures?
Unfortunately, not very far up. According to recent data, the cryptocurrency lobby spent approximately $22 million. This is a definitive increase from the previous years, but many have discussed how it is still too little for an industry of upwards of $1 trillion. Cryptocurrencies aren’t even in the top 20 list and are largely overshadowed by the motor vehicle industry, which spends roughly $82 million, and banks with nearly $65 million.
While Bitcoin is successful, it requires lobbying to become even more successful and develop further. This would be particularly good in the current economic climate that’s become rather hostile towards cryptocurrencies in the wake of the exchange collapses of 2022. Since digital assets have increasingly become recognized within traditional markets, it’s time they used traditional means to advance as well.
Bullish rally
The phrases “bear market” and “crypto winter” are already all-too-familiar for investors. Many are still waiting for a bullish rally, during which the market can grow and become more competitive. Research shows that the $30,000 mark was a stellar opportunity for the bulls to regain control. Unfortunately, it didn’t come to pass as expected, and the momentum didn’t hold.
Now, it seems like the most important thing is for bulls to reclaim the $29.5k to clear the path to achieve the $30,000. This must be done prior to the return of ask liquidity, the lowest price at which you can sell an asset.
Trading range
As the name implies, the trading range refers to the highs and lows an asset’s price moves between during a certain amount of time. Several analysis approaches are employed to identify the resistance and support levels before beginning market trades. The trading range is an opportunity for investors to confirm their entries in order to establish the best option for their market entry.
Recently, the Bitcoin market has reported one of its narrowest ranges so far. The main reason for this is the competitors. As a result, volatility is entirely possible to intervene as well. This has occurred in the context of higher concerns for the traditional market and with the debt ceiling default looming in the background. It led some to feel that the market has become lackluster, particularly compared to the beginning of the year when investors were already getting their hopes up.
Some have attributed it to the historical movements in July 2020, when extensive market moves saw the currency climb to previously unrecorded heights. Unsurprisingly, investors should expect significant volatility within the crypto market, but it’s important to be aware of its scope to create a successful strategy.
Narrowing the trading range isn’t a sign of bearish or bullish moves. It is most often a sign that the larger market is dealing with a challenging situation and that conflicting influences co-exist within the same ecosystem. While many believed problems within the banking sector would provide a stellar opportunity for the crypto market, the unresolved issues with the possible debt defaulting suggest a different outcome.
So, what are some of the strategies that can be valuable during this time? As the trading range widens, the price can move in any possible direction, so choosing a plan focused on a price increase or decrease is unlikely to yield the best results. The straddles and strangles strategy is the most widely employed for investors anticipating price movements, as they allow traders to benefit from all directions, whether upwards or downwards.
To sum up, while cryptocurrencies are still recovering, investors remain as engaged as ever and ready to tackle all the challenges the market has in store for them.
