By Alicia Maher
Bitcoin rebounded seeing five percent uptrend direction. This positive surge is attributed to the confidence from Turkish investors about the digital currency.
Technical analysts say Bitcoin price charts show a swinging value between the trading pairs of BTC/USD. This resulted from lira gaining forty percent off the dollar. Recep Erdoğan, the president of Turkey had earlier introduced comprehensive measures that are designed to bring investors to trade Lira and protect consumers. The currency pair USD/TRY shot to ATH two months ago.
In September, President Erdogan had decried using cryptocurrency, kicking hard against the digital asset. He was passionately against the digital ecosystem of cryptocurrencies. He never acknowledged it.
His renewed confidence in Bitcoin and of course cryptocurrencies added five percent gains to the crypto market, showing a direct relationship the President’s comment generally added to digital assets.
BTC/USD 1-hour chart Source: Trading view.com
Bitcoin Gained From The Renewed Confidence
Analysts like De Poppe believe that Bitcoin’s spot price benefited from the uptrend ending in a correction. He said the bounce resulted from the confidence of investors in the Turkish Lira. To put the shared sentiments into perspective, Crypto Fear and Greed Index say positive mood moved two points. The index described the event as a movement from “extreme fear” to “fear” which does not reveal a remarkable difference.
Other analysts think bitcoin profitability especially for long-term holders in the coming market shakeup looks unpromising. Investors who are interested in profiting from the surge in the Bitcoin market may have their hands full trading the digital asset short-term.
Whalemap officials said in a tweet that Bitcoin holders are up to 4 million, who continue to hold the cryptocurrency as it drizzles to fifty thousand dollars. The holders are equivalent to 20% of the market cap nearing eight hundred and seventy billion.
Whalemap thinks holders of Bitcoin hanging on to the cryptocurrency at a loss will double short-term traders looking at picking capital gains.
Analysts Predict Unrealized Gains
The analyst says the market will move towards an upside once the crossover happens. This means that in the coming days, short term traders who are only interested in consolidating their investments will increasingly fill the spot market with daily orders.
On the other hand, holders will likely sell more Bitcoin, thus riding the demand and supply wave to a point where Bitcoin moves to the next support or resistance point. Presently, holders who are at a loss hope for a turnaround.
Whalemap says the turnaround for Bitcoin is ahead. All pointers show that it is possible. The Whalemap analysts think unrealized losses from Bitcoin holders will play a significant role once upside materializes.
They believe Bitcoin holders who continue to believe in the digital asset despite the downturn will get massive rewards once the cryptocurrency moves to another resistance point.
The upside is a battle between unrealized gains and unrealized losses. Rather than this becoming a bitter rivalry between short-term and long-term investors, Bitcoin market will bounce back only when users, investors and retail traders stick it out to the end.