Due to positive trends in U.S. stock futures, Bitcoin recently tested the resistance zone. However, it has yet to break through this level. The extended 15-minute bullish candle seems to be reversing. Bitcoin found buyers at $92,400, while Andre Dragosch contemplates the timing for a potential move. This article delves into expectations around cryptocurrencies and the potential for significant changes.
Bitcoin at Resistance Level
Bitcoin experienced a quicker decline than anticipated, falling below $100,000. Whether it rebounds as swiftly remains uncertain, but so far, the primary target of $93,000 has not been regained. U.S. markets will be open until 21:00, after which the interrupted holiday will resume. Breaking this resistance before Monday would be favorable for positive trends in the crypto market.
Rekt Capital emerged after a long hiatus to highlight the ongoing test at the resistance level.
“Bitcoin showed a recovery of over 7% from the new Range Low, retesting the ~$93,500 Range High resistance.”
As this article was being prepared, the green candle on the chart began to form a wick, with Bitcoin dropping nearly $1,000 to $92,000. It’s essential to remember that short-term investors often sell on every uptrend. This resistance provides them a good opportunity to sell and buy at lower levels, but post-breakout, they might eagerly return to the game with higher purchases.
Is the Time Right for Cryptocurrencies?
Andre Dragosch discussed his new study conducted with Bitwise, focusing on macroeconomics and Bitcoin. He investigates pricing strategies, predicting better conditions and potential high gains for Bitcoin starting next year.
“Personally, I tend to move against the macro trends as Bitcoin can surpass both up and down the prevailing macro outlook. Any asset’s pricing is essentially macro sensitivity. I believe most alpha derives from this. I think we’re at one of those moments again.”
“Moreover, based on the amount of previous monetary stimulus, I foresee that global growth expectations will accelerate from here, indicating another upswing by 2026.”
“Despite growth being already elevated, recession-level growth expectations are priced into Bitcoin! The last time I saw such asymmetric risk-reward was during the Covid era when Bitcoin rebounded quickly after the March 2020 shock, rising sixfold by year-end… Spiral spring, underwater ball… whatever you call it. We are really facing a similar macro structure now.”
Though there’s always the possibility of being wrong, Dragosch asserts that the “time has come” for cryptocurrencies.