The CEO of the Hedgeye Hazard Administration, Keith McCullough, stated that the Bitcoin price bubble is bursting as the cryptocurrency has entered the Quad 4 phase. At the time of writing, BTC is changing hands at $36,529.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin Price Dropped Below $37,000 and Here’s Why
Bitcoin is struggling to regain strength, extending losses. It fell to an intraday low of $35,791, its lowest level since early August. It fell more than 13% within 24 hours after recovering to $43,500 on Jan. 20. An electric bill A whopping $909 million worth of assets were liquidated in the past day. With futures in the red, the US stock market is on track for another tough day, with the Federal Reserve reeling increasingly hawkish.
Wrong. Bitcoin peaks in time # Quad2 in Q4 and then break the pattern running first # Quad4 in Q1 https://t.co/fIV6GUrob8
– Keith McCullough (@KeithMcCullough) January 21, 2022
The CEO of the Hedgeye Hazard Administration, Keith McCullough, explained that Bitcoin topped in November and then broke the trend before entering the Quad 4 at the end of December. Last week, he tweeted that he was out of Bitcoin and other dynamic risk-based assets.
Hedgeye uses an appropriate Growth, Inflation, Policy (GIP) model to gauge market sentiment and forecast asset returns. It is divided into four economic regimes (quads), with Quad 4 generally representing the most unfavorable environment (inflation slowing and slowing down).
McCullough’s words should become salt because the model is not entirely reliable. This analyst has become a source of ridicule in the crypto community after selling all his Bitcoins in early October for $10,000, claiming that the stories and emotions that drive the Bitcoin community instead for math. This happened just before the leading cryptocurrency quadrupled in value in just a few months. A separate Twitter account was created to track McCullough’s bad times trading activity.
Price of #Bitcoin up $36,624 (345.51%) since Keith McCullough sold
– Keith McCullough sold his Bitcoin (@KeithSold) February 9, 2021
$36,000 will act as key support for Bitcoin. If the leading cryptocurrency dips below the aforementioned price, it is likely to continue its deep drop back towards $30,000. BTC could drop below support shortly before starting to recover. Failure to regain bullish momentum will not bode well for altcoins.
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