After briefly cooling off on August 5, the uncertainties surrounding geopolitical and the pressure of the recession, Bitcoin swiftly rebounded from the $50,000 level.
The top cryptocurrency has been stabilizing between $55,000 and $57,000 over the last day, with a brief local high of $57,220 earlier today. At press time, the asset was trading at $57,033 with a 1.89% rise over the last 24 hours.
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Market Analysis and Predictions
Risks of a Larger Decline
Analysts have been pointing out the risk of a more significant decline. This comes when many view the asset’s current situation as an important buying opportunity.
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According to a crypto market analyst, investors in bitcoin should hold off until the asset’s price drops to the low $40,000 range to secure the best entry price before the next bull run. It should be noted that Bitcoin was trading at around $42,577 back in February this year. 10x Research head of Research Markus Thielen said,
“To ideally time the next bull market entry, we aim for Bitcoin prices to fall into the low 40,000s. We would then expect another major rally attempt.”
Potential for Accumulation
Several other analysts also believe that the asset could plummet before witnessing a rise. Investors will be able to accumulate the king coin before it shoots up. Currently, BTC remains 22% below its all-time high of $73,750.
Bitcoin Wallets in Profit
According to statistics from IntoTheBlock, 9.87 million Bitcoin addresses, the majority of which, 6.88 million wallets, purchased the asset at an average cost of $66,441, are still losing money.
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In addition, 2.99 million holders paid an average of $59,978 for Bitcoin. At the moment, 79% of Bitcoin owners are profitable. Roughly 18% are experiencing a loss.