The Bitcoin price is currently at an inflection point. While some analysts are predicting another price drop towards $20,000 or even lower, other analysts are currently talking about a buying opportunity. In this article, we have compiled the analyses of some of the most prominent analysts in the crypto space.
The Bullish Case for Bitcoin
One of the analysts who is currently maintaining a bullish stance is Michael van der Poppe. In one of his latest tweets, the analyst writes that although Bitcoin is still in a slow market at the moment, he expects movements starting today, as the indices also became volatile on Friday.
Before moving back up, van der Poppe predicts another sweep of the lows for Bitcoin before the market can see buying support for a possible bounce play to $23,000. However, $21,500 is of key importance if this theory is not to be invalidated:
Boring price action on Bitcoin since the correction, but still acting in support here. Indices bounced already and seem to continue to do so. Might have another sweep of the lows and then reverse up, losing $21.5K = trouble time.
A bullish argument for Bitcoin is also a huge amount of stablecoin deposits on exchanges. Stablecoin net inflows are currently reaching their highest level this year. These stablecoins aka “dry powder” could serve as an extremely strong potential buying power for the market, as CryptoQuant’s data shows.
According to analyst Rekt Capital, Bitcoin is also on the verge of producing a bullish engulfing quarterly candle later this month. “Historically, BTC Bullish Engulfing Quarterly candles have preceded strong upside,” the analyst pointed out, showing the chart below.
Also, the Bitcoin funding rate across all exchanges turned negative for the first time since February 13. Remarkably, that day marked the last local low before the Bitcoin price rallied from $21,300 to $25,200 as NewsBTC reported.
Arguments For A Bearish Case
Analyst Skew writes about the 1-day chart structure and trend in his latest tweet. According to him, the weekly opening price will serve as an inflection point for a 1-day breakout towards the weekly demand at $19,000, otherwise there could be a higher low, resulting in a rise to $23,000. His prediction is therefore:
We’re in the chop zone currently. (weakness or strength in coming day will be leading of momentum/direction)
Another popular anonymous analyst warns that the 30-day whales ratio MA is hitting a new high, suggesting that whales are sending more BTC to centralized exchanges, which fits with the current net flows. Since yesterday, nearly 5,000 net BTC have streamed to centralized exchanges.
“The whales Ratio 30H MA reached since a while a level at 88%. Everything above 90% is extremely bearish and indicates a big sell pressure in the short-term. However, stablecoin reserves up and Whales Ratio 30H MA is declining again. Imo first up and more down afterwards to liquidate late shorts first. Imo 22.8k first and 21.5k destination”, predicts InspoCrypto.
Featured image from Andre Francois Mckenzie/ Unsplash, Charts from TradingView.com