The jury is out what data to trust when it comes to Bitcoin putting in a local price close to – or below – $30,000.
Market News
Bitcoin (BTC) could still drop below $30,000 but several prominent sources have called for an end to the latest bearish trend for BTC/USD.
In one tweet 25, Mike McGlone, senior commodity strategist at Bloomberg Intelligence, looked at Bitcoin’s position relative to its 20-week moving average, noting that historically, current levels have marks a turning point.
McGlone: Bitcoin “expands a bit” at all-time high
Still hoping for Bitcoin to weather a macro storm this year, McGlone’s data puts BTC/USD in the same position that it halted the downtrend in March 2020 and July 2021.
These proportions correspond to the coronavirus cross-traffic crash and the Chinese miner’s trip.
“The fact that Bitcoin is a burgeoning asset, with a market cap of less than $1 trillion versus around $100 trillion in market cap, a little bit more open-ended could be beneficial,” he commented. alternative to cryptocurrencies”.
“Our image depicts a bottoming indicator for Bitcoin – about 30% below its 20-week average.”
As Cointelegraph recently reported, Bitcoin has repeated the events of March 2020 onward in more ways than one this month.
Worried about negative funding rates
However, other sources continue to call for caution when it comes to timing of the spot loss.
Related: ‘Stop Panic Selling’ – Bitcoin Whales Pocket BTC as Exchange Balance Drops
Among them is the popular Materials Scientist analyst on Twitter, the creator of the analysis platform Substance Indicators.
This week, he took aim at funding rates, although a negative doesn’t necessarily mean that Bitcoin will beat the bears with a bull run.
“I keep seeing people argue that negative funding requires us to bottom out,” he Discuss.
“Half of CTs used that logic to argue that 40k was the bottom. It’s not. This chart shows the number of negative funding pairs over time, along with the BTC chart at the top. “
An accompanying chart shows the circumstances in which negative capital on cryptocurrencies did indeed arrive before continuing to decline in 2021.
“No one knows when the bottom of BTC will be. Sometimes it is as simple as assessing the asymmetry of a potential decrease/gain,” fellow trader and analyst William Clemente more In a fresh update for the day, it is recommended that investors use dollar cost averaging (DCA) to enter the market within the current range.
“As I said yesterday, don’t think that asymmetry will drop the value of BTC in the low 30 seconds. Potential discount 20k, increase 60k+. Getting into these levels is IMO wise. “
BTC/USD is trading at around $37,000 at press time, having held up gains from the start of the week.