After reaching an All Time High, the price of bitcoin began to suffer a small correction, which gained strength in the last week due to news about the new variant of Covid.
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In Transfero’s analysis, this drop, with decreasing volume, can characterize a short-term bearish movement as only a correction, and not a trend reversal. Thus, the drop gave rise to a continuity chart pattern called a “Bullish Flag”, as we can see in the chart below.
“The breaking of this bullish flag upwards indicates the end of the correction and the continuity of the medium/long term macro trend, targeting the projected size of the first leg up”, said Transfero’s team.
According to the experts, in this scenario a possible breakout could take the bitcoin price back to US$ 63.3 thousand. However, they warn that due to the Covid-related global scenario, it is important to watch out for a possible rush for liquidity to raise funds and stem losses on major exchanges. “This could affect the crypto market as well, potentially taking the BTC price to US$ 51.2 thousand”, they stated.
The Fear & Greed index hasn’t changed as much since last week, recording a 31-point mark. Bitcoin’s dominance continues to fall, a sign that the altcoins market continues to appreciate.
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DeFi Land: Multi chain game was highlight of the week
DeFi Land, based on the play-to-earn model, is a multi chain farming game that promises to accelerate the ecosystem of “blockchain games”.
Its project is decentralized, which aims to encompass in its platform even staking and yield farming strategies and it was recently listed on the FTX brokerage. In addition, it also has major market players as investors.