Bitcoin price risks $25K dip despite ‘macro pivot point’ — New analysis
Bitcoin (BTC) faces a “breakdown” and distribution despite a new macroeconomic paradigm being around the corner.
That was one of the conclusions of quantitative Bitcoin and digital asset fund Capriole Investments, which, in its latest update, warned that Bitcoin was “not yet” ready to flip bullish.
United States equities are booming, and the Federal Reserve may be at the end of its most stringent monetary tightening ever — but Bitcoin has failed to react.
As traders predict a return to levels closer to $25,000 or lower, Capriole believes that more time is necessary for the new macroeconomic reality to sink in.
“At the same time that Bitcoin has been faltering, the S&P500 has had its longest winning streak in years and the Fed has essentially paused rate hikes at what is now the tightest monetary policy regime on record,” founder Charles Edwards writes.
While suggesting that the U.S. greenlighting a Bitcoin spot price exchange-traded fund could turn the situation around, Bitcoin remains pinned below resistance on both long and short timeframes, Edwards concludes.
“The next support levels are $28K, $24K and low-$20Ks; with each offering significantly better relative opportunity,” he continued.
As such, utilizing the Wyckoff method, “distribution” currently characterizes BTC price action.
“Low Timeframe Technicals: Breakdown! Support at $30K failed and a new bearish trend has emerged,” Edwards summarizes.
As Cointelegraph reported, Capriole is far from the only market participant predicting BTC price conditions to get worse before they get better.
Related: Bitcoin loses $29K as traders flag key BTC price levels to watch next
On-chain monitoring resource Material Indicators this week argued that multiple lower levels remain
Read more on cointelegraph.com
