While JP Morgan and DailyFX experts are talking about a possible crypto winter, some names like John Bollinger are not so sure that winter is coming yet. The fall of Bitcoin from $ 62,000 to dangerous levels of $ 30,000 seems to have blown frightening winds. Some analysts believe the situation could get worse. And if conditions remain the same, that’s not an inconsiderable possibility.
A number of factors, including the sharp drop from the $60,000 levels, the appearance of the notorious “death cross”, bad news from China, and corporate appetite, seem to be working together to lay the groundwork for a chilly mood. In a statement compiled by The Wall Street Journal, DailyFX analyst Peter Hanks is of the opinion that red is more likely to appear on price charts more easily than green in the near future.
“I think bitcoin is definitely heading for more losses on this chart… If it breaks [below $30,000], then crypto winter is definitely on the agenda again.”
Bitcoin bulls were able to hold the $30,000 price line even as prices briefly plunged below this zone. However, for now, $30,000 seems to have solidified itself as a strong price support.
J.P. Some other experts, such as Morgan analyst Nikolaos Panigirtzoglou, have an explanation that is closer to market sentiment analysis than technical indicators. In a recent report, Panigirtzoglou explains that Bitcoin has not yet gained the trust of institutions, so not enough money is flowing into the markets.
“More than a month after the May 19 crypto crash, bitcoin funds continue to bleed. Institutional investors who tend to invest in publicly traded bitcoin funds or regulated instruments still show little appetite to buy bitcoin dips.”
Is there room for a new explosion?
But not everyone is sure that this cold weather will turn into crypto winter. For example, Sam Bankman-Fried, CEO of cryptocurrency exchange FTX, said that institutions are willing to invest in cryptocurrencies; they are just waiting for the right time or have not reached a full understanding of the market.
Another person who thinks that the crypto-asset markets have bottomed out in the short term is John Bollinger himself, the creator of the famous technical indicator that bears his name. In a recent interview, he talked about a potential bottom around $30,000, which gave him an avalanche of support on Twitter.
HashKey Hub Marketing Manager Molly also shared a statistic that might be a bit of a light at the end of the tunnel.
“Never since the days of Elon Musk announcing Tesla’s acquisition of Bitcoin have so many stablecoins entered the exchanges.”