Bitcoin soon at a buy price after the FTX shock? The stock market council

Bitcoin (BTC) remains under pressure. While the queen of cryptocurrencies recently recorded a new low point for 2022, against the backdrop of the FTX scandal, some investors are wondering if the time to buy is approaching, while bitcoin has already seen its price divided by 4 compared to the historical record registered at more than 67,000 dollars and has returned to levels not seen for more than two years. “If we look at a major bitcoin investment vehicle such as Grayscale, the discount to net asset value is now around 43%. This means that the trust is heavily oversold and anyone who buys now gets a 43% discount on the value of the assets it owns,” observes Simon Peters, market analyst at eToro.

The expert also notes that another major institutional bitcoin player, Pantera, bought more bitcoins as the price fell. The fund “has announced in recent days that it is buying an additional $140 million of the cryptocurrency, signaling to markets that it sees a quality entry point in price right now,” it says. While bitcoin is falling again this morning, it “is approaching its cost of mining in the United States, estimated at nearly 15,000 dollars”, notes John Plassard, investment specialist at Mirabaud Banque. While the price of bitcoin is now moving close to the cost of mining, some observers believe that the residual downside potential of the cryptocurrency is now more limited.

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Towards more regulation for bitcoin and cryptocurrencies?

Separately, as calls for greater regulation of cryptocurrencies grow, Joe Biden said G20 countries are committed to “strong regulation, supervision and control” of crypto-assets. Washington also says it welcomes “favorably the FSB’s proposal to establish a comprehensive international framework for the regulation of crypto-assets”, notes eToro.

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What does technical analysis say?

This year, Momentum and 21Millions, Capital’s stock market and premium cryptocurrency newsletters, have regularly displayed the greatest caution on the outlook for bitcoin prices, stressing on numerous occasions that the underlying trend remains unfavourable.

Bitcoin: price action and technical analysis Capital (Investing data)

And the backdrop hasn’t changed at this point, from a technical analysis perspective. The recent depression of the major support of 18,157-18,536 dollars (ex-low point of the last few months and mathematical support) then of the strong support of 17,568-17,610 dollars (low of 2022), with the registration of a new annual low point , has in fact confirmed the downward trend in the medium term. However, bitcoin would benefit from interesting chart support around 13,764 dollars (peak level of 2019, among others).

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For his part, Vincent Boy, market analyst at IG France, recently indicated to Capital to expect a test of the support zone of 12,500-14,000 dollars (beam of long-term supports and levels at which many orders of purchase in trading platforms), which could initiate a lasting recovery movement in the price of bitcoin.

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