Bitcoin (BTC) Price Could Still Drop Below $30,000, but some prominent sources are already announcing the end of the latest bearish turn for the BTC/USD pair.
In a tweet on January 25, Mike McGlone, senior commodity strategist at Bloomberg Intelligence, I observe bitcoin’s position relative to its 20-week moving average, noting that historically, current levels have marked a turning point.
McGlone: bitcoin is “a bit extended” at its all-time highs
Still hoping bitcoin will weather a macro storm this year, data from McGlone puts the BTC/USD pair in the same position where it stopped the downtrends in March 2020 and July 2021.
These incidents correspond to the cross fall of the coronavirus in March and the defeat of the miners in China, respectively.
“The fact that bitcoin is an emerging asset, with less than $1 trillion in market capitalization versus close to $100 trillion in global equities, that it spread a bit may give the cryptocurrency an edge.”, commented.
“Our chart represents a bottoming indicator for bitcoin: about 30% below its 20-week moving average.”
As Cointelegraph recently reported, bitcoin has echoed the events of March 2020 and beyond in more ways than one this month.
There is nervousness in the market due to negative financing rates
Nevertheless, other sources continued to call for caution in calling time on spot price losses.
Among them, There is the popular Twitter analyst Material Scientist, creator of the analysis platform Material Indicators.
This week, criticized funding rates, which, while negative, do not necessarily mean that bitcoin is going to fool bears with a bullish squeeze.
“I keep seeing people argue that negative funding makes it necessary for us to bottom out”, argument.
“The CT half used that logic to argue that the $40,000 price was the bottom. It was not. This chart shows the count of negative funding pairs over time, along with the BTC chart on top.”
An attached graph showed the cases in which the negative funding across cryptocurrencies did indeed come before a further drop in 2021.
“No one knows when the bottom will hit for BTC. Sometimes it’s as simple as assessing the asymmetry of potential downside/upside,” added also trader and analyst William Clemente in a further update on the day, advising investors to use dollar cost averaging (DCA) to enter the market in the current range.
“As I said yesterday, I don’t think the asymmetry is to the downside with BTC in the low 30s. The potential downside is $20,000, and the potential upside is over $60,000. Assessing DCA at these levels is wise.”
The BTC/USD pair was trading around $37,000 at the time of writing, maintained gains since the beginning of the week.
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