According to an analyst at BlueBenx, digital currency needs to be evaluated based on three financial market trends that consider the performance of an asset in the short, medium and long term.
The first quarter of the year was marked by euphoria and optimism in the crypto assets market. In April, Bitcoin surpassed US$ 63,000 and in Brazil it was quoted a little above R$ 362,000, its valuation record since it was created in 2008. However, the asset started to suffer recurrent falls after comments by Elon Musk and market sanctions, such as China’s regulation.
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This Monday (21/6), the asset had a 10% drop, reaching a traded a little above US$ 32,000, after new repression by China in relation to the mining process, which consumes a lot of energy to transact the active in the blockchain. Currently, the asset is traded above US$ 34,000.
The price correction scenario has not scared the big crypto investors known as the whales. An example of an institutional investor that is taking the opportunity to buy low is the company MicroStrategy, which even with the recent declines in assets maintained its strategy of acquiring new volumes. It recently purchased about $489 million dollars surpassing 100,000 BTCs in its portfolio.
However, despite the currency’s falls, the financial operations analyst at BlueBenx, Wilton Gomes, stresses that the asset needs to be evaluated in three spheres of comparison. “In a general market context, we have three analysis trends that need to be considered when evaluating the fluctuation of an asset. These trends are called primary, secondary and tertiary”, explains Gomes.
“In the case of a primary trend, the comparison of the movement of an asset is made over the long term, which considers a time period of one to four years. The secondary trend envisions a medium-term view, from one month to one year. The tertiary trend, on the other hand, observes short movements that happen daily, such as the recent ones. In the primary analysis, Bitcoin is on an uptrend. As strategists, we look at how the market has behaved within these three perspectives. We always start with the tertiary movement, analyzing daily news and events and then comparing them with secondary and tertiary analyses,” adds the analyst.
On what could happen with Bitcoin in the next few days, Wilton reminds that there are favorable points for growth. “Regarding the future of the crypto market, there are optimistic forecasts, especially considering the long term. In this period of corrections, while many investors left their positions basing their decisions on the short term, large investors and companies took the opportunity to accumulate Bitcoins (BTC). In addition to MicroStrategy, other investors continue to take advantage of the asset’s write-off to accumulate capital in crypto, according to a report by Chainalysis, in recent weeks there were more than US$3 billion in purchases of BTCs for this public”, he assesses.