The price of bitcoin remains in a volatile up and down price range. Going back to May 12, the digital currency has been between around $28,030 and $32,375. More recently, the range is between $29,184. The trading over the last 2 – 3 trading days has seen volatile up and down moves between those levels.
In between sits the 100 hour moving average at $30,308 and 200 hour moving average at $30,395 (blue and green lines in the chart above). Can't really say that moving averages and been perfect in defining bias, but has been price action near those levels going back in time. The current prices trading just above those moving averages at $30,481.
Needless to say, market traders are trying to figure out the next move in the digital currency.
Billionaire investor manager Michael Novagratz said today that two thirds of crypto hedge funds will fail as result of the consequences of the current market downturn.
“Volume will go down, hedge funds will have to restructure. There are literally 1,900 crypto hedge funds. My guess is two thirds will go out of business.”
He also blamed digital asset negative market reaction to the Federal Reserve's removal of stimulus.
Bitcoin - and the other "digital coins" that have popped up over the years -
the price bitcoin since the March swing high near $48,234 has seen the price move down around 37%. Since the high price from November 2021 near $69,000, the price is down near 55%.
Did the stimulus money head into bitcoin?
From the March 2020 low, the story is not so bearish in fact, the March 2020 low came in at $3850. At the current price, bitcoin is up 714%. That helps to keep the HODL idea intact (Hold On for Dear Life).
So in summary, it is a bit of a mixed story.
There are still some out there who still up big over the last few years. There are others after January 2021, who are not so happy and down quite a bit on their investment. Traders had to be in it early to be happy today. Others post January 2021, may have the HODL spirit, but there digital currency account is much lower.
By the way the midpoint of the range since the pandemic low comes in at $36,425. With the price below that level, the tilt from that perspective is still to the downside. Stay below is more bearish.