Despite the short-term fluctuations, analysts believe that the uptrend in bitcoin prices has not changed. Experts also point out that some traders may be looking to invest in Altcoins.
to the Report CoinDesk, a one-month stabilization of the Bitcoin price between $ 50,000 and $ 60,000 indicates a dispute between buyers and sellers. But considering the long-term outlook, it can be said that the uptrend has not been damaged.
According to Katie Stockton, a technical analyst at Fairlead Strategies, it is important to keep this in mind; This is because some digital currency traders experience short-term volatility.
In an interview with First Mover, Stockton said:
The resistance fractures we have seen in Bitcoin have now gone beyond that.
He prefers to see a definite resistance failure in the current stabilization phase to achieve an uptrend.
Stockton says that despite the increase in short-term volatility, a decrease of about 3 to 6 percent has less of an effect on the chart. This indicates continued support for trends and price acceleration indicators.
By stabilizing bitcoins, traders can also look at the potential of altcoins to climb. Stockton says:
Bitcoin rotation is definitely happening in favor of other digital currencies.
Stockton uses the Relative Rotation Chart (RRG) to measure the 5-day trend and the acceleration of penins against Bitcoin.
The IAS price has outperformed Bitcoin over the past five days, while the Ethereum price has shifted from a rising quarter to a top quarter in the same period. However, Stockton noted that a pullback below $ 1,974 in Ethereum could record a failed resistance failure and pave the way for a deeper or more stabilizing pullback.