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In the last 24 hours, 69% of the Bitcoin buyer flow came from bearish traders who have reduced their call positions on OKEx. Dave The Wave from Twitter analystsdollars said that he paused BTC transactions due to the current fluctuations in Bitcoin and turned to altcoins. Meanwhile, the fear and greed index points to extreme fear, with the bearish trend taking over traders in the stock markets. 5 Twitter analysts announced these levels below $40,000 for Bitcoin price…

Extreme fear grips Bitcoin investors

Cryptocurrency market strategist Dave The Wave predicted Bitcoin’s retracement to $20,000 in the ongoing correction. On-chain analystsdollarseries argues that the accumulation continues despite the BTC price falling to $43,000. The fear and greed index is considered an indicator of trader sentiment towards Bitcoin in the cryptocurrency market. The indicator is now signaling “Extreme Fear” among investors.

Historically, extreme fear has caused Bitcoin trading to be well below its true value, and analystsdollarser sees this indicator as a data source. Also, experts predict more corrections in Bitcoin price. However, there is some positive news. Charles Edwards, the founder of Capriole Investments, believes that Bitcoin has a strong relationship with S&P. As the index posted a decline, traders’ outlook on Bitcoin turned to bearish represented by extreme fear in the indicator.

In the short term, Bitcoin is a slave to S&P. Extremes in Fear and Greed result in ultra-high correlation. Today we are in Extreme Fear. The good news is a number of metrics that show the S&P is near the bottom.

https://twitter. com/caprioleio/status/1440039815336972290

OKEx shares Bitcoin statistics

Cryptocurrency exchange OKEx recently shared the statistics of Bitcoin options on Twitter. The exchange recorded a 69% influx of buyers from Bitcoin bears and aggressively lowered its positions before the expected drop in price. As bearish sentiment enters the market, Twitter analystsdollarseries admits that due to the relatively high waves, it has reduced Bitcoin trading activitydollars and increased the size of altcoin positions. Dave The Wave, the cryptocurrency analyst and crypto phenomenon behind Twitter user @davthewave, informed his followers in a recent tweet that he will turn the bearish outlook for Bitcoin higher in two to three months. The analyst says that until then, altcoins will be trading:

Irrelevant TA. Parabolas are correct. Give it a few months, and I’ll be overdrive once again. Why trade BTC when you can trade altcoins in extra volatile price movements?

https://twitter. com/davthewave/status/1440178872008384517

Analisdollarser expect further BTC price drop

Daniel Joe, a crypto analyst and trader, states that $40.100 is the bottom for Bitcoin. Joe expects the BTC price to recover after the $2 billion market cap is deleted from Bitcoin (BTC):

40. Bottom for 100 Bitcoin? I think it might be the ground. On-chain trend remains bullish, wave 2 corrective following ABC wave structure, above $30,000 to $40,000 trading range tested with a wick following $2 billion liquidation. It’s early, so we need to watch closely.

https://twitter. com/DanielJoe916/status/1440228210126381063

Dave the Wave details Bitcoin analysis

Going back to Twitter analyst Dave the Wave, we could see a period similar to 2014 when Bitcoin’s current price action fell from around $988 to $160. Dave the Wave sets the technical levels:

While some compare PA (price action) to 2013, it’s interesting to compare it to 2014. If you find the chart alarming, remind yourself: 1) It’s just TA (technical analysis)
2) You can think of it as a kind of stress testing/risk management. And that would be my *worst case* scenario.

Dave the Wave’s technical charts show that the largest cryptocurrency by market cap has seen its fall to a short-term target of $37,500:

Anchor time.

Trader also expresses his doubts about the “golden cross”, a technical event that is seen by many investors as a sign that indicates future rallies:

Why is the golden cross problematic? Because the 50-day pass of 200 can be a very short reference/preference.

Dave the Wave adds that he doesn’t think the correction will cause a major downside spike where the Bitcoin price may revisit prices below $20,000 if mudollar:

Just as you don’t see a peak, you might not see that huge capitulation drop abruptly. As with all fixes, people will expect lower prices that will never come. Entirely.

Gareth Soloway estimates the $18,000 to $20,000 range

After the upward pullback of $52,000 a few weeks ago, what chief market strategist Gareth Soloway called a “retreat to the crime scene,” Bitcoin hit $43,600 on Monday. Soloway had previously sought the top of $52,000, which was then the neckline of a head and shoulders formation. Now, the analyst is calling for a pullback for BTC price to as low as $18,000 to $20,000 before a rebound. The exception is when Bitcoin broke the previous ATH level and surpassed $65,000; Only then will the reverse acceleration be confirmed, Soloway says:

We’re seeing a follow up today. We haven’t really taken out the low axis since then, that’s the technical level I’m currently watching. If this is subtracted, you’ll likely land here at $40,000 to $41,000 and then down to $30,000. You know my long-term predictions… you will eventually hit the $18,000 to $20,000 mark on Bitcoin.

Meanwhile, Soloway said it is unlikely that the S&P 500 will hit new highs from here in the foreseeable future:

One of the big technical things here is that this is the first time this market has done an LL since March 2020 when the low was entered. This is a fundamental change in the direction of the market.


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Michael Lewis

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