Keep an eye on Bitcoin.
After a devastating pullback from about $48,000 to $26,000, it’s just starting to pivot higher. It’s also incredibly oversold on RSI, MACD, and Williams’ %R. Plus, most of the Terra USD (UST) crash may have been priced into the crash, too.
“Bitcoin has been a casualty of the broader market selloff of risky assets, but the latest crisis with stablecoins triggered the collapse of the $30,000 level, which was a key entry point for many institutional investors. Confidence has been waning in the cryptoverse but it seems we are getting close to the end of the market sell-off,” said Edward Moya, senior market analyst at Oanda, as quoted by Time.com.
Better, analysts still believe Bitcoin can eventually rally to $100,000. In addition, with Bitcoin, there’s still a scarcity issue. “There are only 18 to 19 million Bitcoins currently in circulation, and minting will stop at 21 million. Industry experts consistently point to this built-in scarcity as a big part of cryptocurrency’s appeal,” added Time.com.
However, if cryptocurrencies aren’t your thing, check out the Bitcoin miners, which track the movements on Bitcoin. Marathon Digital (MARA), for example, is just starting to pivot higher from oversold conditions. Or, look at Riot Blockchain (RIOT), which became oversold around $8.
Or, consider stocks of companies that hold a significant amount of BTC, such as MicroStrategy Inc. (MSTR). After dropping from a high of about $500, MSTR now sits at $204.57, rebounding well off 52-week lows. If Bitcoin can recover some lost ground, MSTR should be able to push even higher, as well. It’s just something to keep in mind in this crazed market.
