Bitcoin trader says expect more chop, downside, then sideways price action for BTC this summer

The state of crypto market has been the dominant headline for the past few weeks. Non-crypto native media have criticized Bitcoin (BTC), and DeFi investors who invest in assets that are of no fundamental value. Crypto-savvy traders and analysts have been looking at charts and trying to find clues about when the market will bottom or reverse.

Although novice investors may be nervous, some have predicted the end of this asset class. However, for those who have been around for many cycles, this bear market is simply another fire in the forest that will eventually create a better ecosystem.

Crypto Jebb, a Cointelegraph contributor, and Scott Melker (an independent market analyst) discussed the next steps in the crypto market. They discussed their opinions on why Bitcoin’s value proposition is strong, and what price action could look like for the top cryptocurrency.

Here are some key points that Crypto Jebb & Melker discussed.

Bitcoin is being used exactly as it was intended

Bitcoin spot price is what traders are most focused on. They lament that it isn’t performing as an inflation hedge that many had promised. Melker however pointed out that Bitcoin’s performance greatly depends on where a person lives and the economic status of the country.

Although Bitcoin’s value is down in U.S. dollars, it still offers people an option to keep their money safe and transact in an open financial market.

Melker emphasized the fact that Bitcoin is the first true asset that allows people to leave the financial system that isn’t working for them.

Crypto Jebb says Bitcoin is thermodynamically stable, which he defines as an asset that holds on to the energy put into it and doesn’t “leak it out” through inflation.

Which direction will the market go?

Melker was clear about the future of the crypto market. While it might not appear like crypto adoption is moving quickly to people who have been around the market for years but “the adoptions of Bitcoin are faster than the internet.” It’s a hockey stick curve which is going absolutely parabolic.”

Melker and Crypto Jebb suggested that the paradigm shift to investing in cryptocurrencies will take longer because most investors have been trained to fear loss and are conditioned to invest in things such as a 401k and Roth IRA.

Melker responded to critics who might point to Bitcoin’s volatility to be a reason to avoid cryptocurrency. He highlighted the difficulties that equity markets have faced lately, citing the poor performance stocks like Netflix, Facebook and PayPal, as well as Cathie Woods’s ARK funds.

Melker stated,

Messari research was my first to say that there was no place where you could put money in any asset class or store any value. You would lose 8% of your purchasing power if you kept cash.

Similar: Deutsche Bank analysts predict Bitcoin will recover to $28K in December

In the short-term, expect more downside

Melker says that the market is in a poor state right now. However, Melker believes that the trend is your friend and that there is a possibility of further declines.

Melker said that some developments are coming up that could help market get out of its lull. These include the Fed tightening cycles, which historically have put pressure on asset values for the first three quarters until the market adjusts.

Melker stated,

My best guess is that this summer has been very slow, boring, low-volume and low liquidity. We might make new lows or just cut around $17.5K to $22K/$23K or something similar. Then we can really see the market’s composition coming into the close of the year.”

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com. You should do your research before making any investment or trading decision.

https://cointelegraph.com/news/bitcoin-trader-says-expect-more-chop-downside-then-sideways-price-action-for-btc-this-summer