Bitcoin Bottom May Yet to Be Hit

Bitcoin Technical Analysis

Although BTC has found temporary support at approximately $20,000 the odds are stacked against the world’s oldest cryptocurrency finding a true bottom at this price point. Currently, as of 3 PM, ET Bitcoin is trading at around $20,600, which is where we entered our last trade, which unfortunately ended in a loss last week when on Friday Bitcoin’s intra-day high exceeded $22,000.

The highs of last week also confirmed resistance at the 200-week simple moving average. This makes this the first occurrence of resistance at this moving average which in the past has served as support during the bear markets of 2015, 2018-19, and 2020.

 

MLIV Pulse Survey

Another obstacle BTC faces is investor sentiment. According to Bloomberg’s latest MLIV Pulse survey, 60% of the 950 surveyed investors expect Bitcoin to post another drop of around 45% to reach $10K. But the remaining 40% think bitcoin could soon go back above the $30,000 important psychological support level.

Speaking to Bloomberg, Tribe Capital’s Jared Madfes noted that “it’s very easy to be fearful right now, not only in crypto but generally in the world,” adding that the expectations for another significant Bitcoin retracement reflect “people’s inherent fear in the market.”

Ruchir Sharma on Bitcoin

In an article published by AMBcrypto today Managing Director and Chairman of Rockefeller International, Ruchir Sharma, echoed the same fears laying out a major point as to why Bitcoin may be doomed to trade lower still.

“Sharma also predicted significant declines in Bitcoin and other digital assets during the following six months, at least in part as a result of the ongoing slump in U.S. stocks. He pointed out that equities often drop by 35% during bear markets, which last around a year. The S&P 500 has only plummeted by 20% during this less than-a-year-old bear market.”

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