Bitcoin rebounded again after briefly hitting $62,700 at 22:00 yesterday evening. It reached a maximum of $64,698 near 7 o'clock this morning (25th), and it seems that it will soon challenge the $65,000 mark.
At present, Bitcoin has fallen slightly. At the time of writing, Bitcoin is $64,198, up 1.98% in the past 24 hours.
Bitfinex Analyst: Bitcoin’s key resistance level is $65,200
Regarding the future trend of Bitcoin, Bitfinex exchange analysts reminded investors in an interview yesterday (24th) that the current rebound cannot confirm the end of the long-term downward trend, and they must continue to observe whether Bitcoin can break through the August 25 Relative high of $65,200:
Bitcoin would need to break above the August high of $65,200 to confirm the end of the long-term downward trend.
Bitcoin is currently very close to this resistance level. The reason why this point is important is that Bitcoin has been in a downward trend since it hit a record high of $73,666 on March 14 this year; and the $65,200 level is 9 It was a high point before the decline at the beginning of the month. When this position breaks through, it means that the bottom is officially formed.
However, the analyst went on to add that Bitcoin’s trend may still tend to consolidate in the short term, as buying power appears to have weakened recently:
It is entirely possible that Bitcoin will form a new consolidation range at the current price and remain volatile for a period of time.
As we have observed previously, previous price increases were driven by spot buying, followed by contracts and futures markets, but spot buying has slowed down, and once prices break $63,500, spot trading volumes will trend more towards gentle.
All four major U.S. stock indexes rise
The People's Bank of China proposed three major policies yesterday to boost the sluggish economy. A-shares and Hong Kong stocks jumped across the board. The stock prices of Chinese companies listed in the United States also experienced a surge last night. Coupled with investors' optimism about interest rate cuts, the U.S. stocks closed higher on the 24th, with the Dow Jones and S&P 500 indexes closing at record highs.
- The Dow Jones Industrial Average edged up 83.57 points, or 0.20%, to close at 42208.22 points, setting a new high for the fourth consecutive trading day.
- The S&P 500 index edged up 14.36 points, or 0.25%, to close at 5732.93 points
- The Nasdaq rose 100.25 points, or 0.56%, to close at 18074.52 points
- The Philadelphia Semiconductor Index rose 65.97 points, or 1.31%, to close at 5091.78 points
Matrixport: Bitcoin volatility expected to continue declining
In addition, Matrixport also released the latest research report on Twitter yesterday, saying that the price of Bitcoin has basically maintained a fluctuation range of up to 20% in the past 18 months. With the launch of Bitcoin ETF related options and institutional participation, With the addition of investors, the volatility of Bitcoin will be further compressed, so it is recommended that investors adopt the strategy of selling volatility to obtain additional income:
While Bitcoin is naturally volatile, rolling 30-day returns show that its price has remained largely within a ±20% range over the past 18 months. We anticipate further reductions in volatility and therefore recommend a selling options strategy in early 2023, including selling out-of-the-money put and call options to generate additional income.
Even though this strategy has experienced losses, it has generally performed well as volatility has declined overall. With the launch of Bitcoin ETF-related options, it is expected that more institutional participants will enter the market, further compressing volatility.
Therefore, selling volatility remains a viable strategy to allow Bitcoin holders to generate additional income.
