Bitcoin and Ethereum may have found the bottom of recent losses, says Arthur Hayes, co-founder of crypto exchange BitMEX.
Hayes said in a blog post that Bitcoin’s bottom range is between $ 25,000 and $ 27,000, and Ethereum will find support between $ 1,700 and $ 1,800.
However, Hayes said neither token was yet ready to recover significantly. Market sentiment is expected to be curtailed by pressure from the Federal Reserve’s rate hikes and rising inflation.
The founder of BitMex provided an overview of the scenarios in which Bitcoin and Ethereum can begin recovery. However, it takes time to execute such a scenario.
Weak hands need to be removed before recovery
Mr. Hayes said that the main factor that puts pressure on Bitcoin and Ethereum is that most short-term holders are trading at losses. Such traders sell to reduce losses rather than hold until they make a profit.
As a result, market recovery can be quickly hampered by sellers leaving their positions to regain some value.
This volatile price behavior reveals the capital of short-term traders who half-believe this is the bottom. These people want to catch the knife and go out for immediate profit.
Regarding his predictions about the bottom of Bitcoin, Mr. Hayes said Terra’s recent sale of 80,000 Bitcoin to support Stablecoin has already removed a lot of selling pressure from tokens.
In addition, Hayes said the recent differences between the crypto and equity markets may indicate that the bottom may be visible.
When will Bitcoin and Ethereum recover?
Although no exact time frame is given, Hayes said the market will begin to recover only after short-term traders are freed from capital.
He advised traders to be patient with the market and said that “apes with diamonds” could return to active trading only after short-term traders left the market.
Hayes also stuck to his previous prediction that Ethereum would clear $ 10,000 by the end of the year. Still, as the Federal Reserve tightens monetary policy, he tentatively predicts much more market volatility.
The content presented may include the author’s personal opinion and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.