Bitcoin (BTC) could still drop below $30,000, but some prominent sources have already called for the end of the last bearish turn on BTC/USD.
In a January 25 tweet, Mike McGlone, chief commodity strategist at Bloomberg Intelligence, said: I had eyes Note that Bitcoin’s position relative to the 20-week moving average has historically formed a turning point at its current level.
McGlone: Bitcoin Stretches A Little Bit At Record Levels
Bitcoin is still hoping to survive the macro storm this year, but the McGrone data puts BTC/USD in the same position that halted the downtrend in March 2020 and July 2021. There it is.
These incidents correspond to the three-month coronavirus clash and the defeat of Chinese miners, respectively.
“Bitcoin is a bullish asset with a market capitalization of less than $1 trillion, while global stocks are around $100 trillion, and the fact that it has expanded quite a bit could bring benefits to cryptocurrencies. There is sex,” he commented.
Our chart shows the Bitcoin Bottom Index, which is about 30% below the 20-week average.
As Cointelegraph recently reported, bitcoin has been echoing events since March 2020 in more ways than this month.
Tensions over negative funding rates
However, other sources continued to draw attention to the resonance time of spot price losses.
Related: “Stop Panic Selling” – Bitcoin Whales Putting BTC Backup in Their Bags as Their Exchange Balance Drops
Among them was the famous Twitter analyst, Material Indicators, creator of the analytics platform Material Indicators.
This week it was aimed at funding rate. This is a minus, but it does not necessarily mean that Bitcoin will pressure the bear higher.
“I keep watching people discuss passive financing that needs our bottom line,” he said. insist on..
Half of the CTs used this reasoning to claim that 40K was the least. Not so. This chart, along with the BTC chart at the top, shows negative funding pairs over time. The number appears. “
The attached chart shows an example of what happened before passive cryptocurrency funding completely declined in fact in 2021.
“Nobody knows if Bitcoin bottoms or not. Sometimes it’s as easy as assessing a potential negative/positive asymmetry,” said a trader and analyst. William Clemente said. added The latest information on the day encourages investors to use the dollar cost averaging (DCA) to enter the market in its current range.
“As I said yesterday, don’t expect negative asymmetry to be in BTC in your early 30s. Possible negatives 20K and positives over 60K. DCA to these levels is IMO wise.”
BTC/USD is trading at around $37,000 at the time of writing, keeping the gains from the start of the week.