Analysts give their opinion about what is happening with the price of Bitcoin.
Now it seems that the bears win the battle. This was the opinion of Alexis Texeiro, corporate analyst at Global Markets and data analyst at Bit2Me, through his LinkedIn account
“Although spot Bitcoin appears to be doing well, interestingly enough, Valkyrie’s Bitcoin Miners ETF, $WGMI, has outperformed Bitcoin spot returns over the past month. Despite all the macro pressure, institutions are still looking for a way forward to invest in Bitcoin through the legacy markets,” he explained.
He then said that, “underneath it all is a fraying phase of re-accumulation. Net outflows of $BTC from exchanges have only occurred in recent volume four times in history and just prior to parabolic rallies, as seen in the Glassnode graph Many metrics look good, the danger today is that in crypto we have risks of contagion.”
Although the price of Bitcoin has found momentary stability these days at USD 40,000, the current market sentiment is one of “extreme fear”, according to the Fear & Greed index. This means that fear that its value will drop, investors could sell the funds they have in the cryptocurrency, causing more supply than demand and, therefore, a decrease in the value of the currency.
This has already become evident in the behavior of the whales, that is, of the investors who own large volumes of Bitcoin. This was specified by the analyst Ali Martínez, who reported that the chain data shows that, in four days, the number of addresses in the network with more than USD 10,000 in BTC has decreased by 4.6%.
Contrasting Views on the Matter
On the other hand, Juan Carlos Gutiérrez Clavijo, who works as R&D Financial Consultant at Asset, also expressed himself through LinkedIn, and according to his opinion, “we are in the aversion phase, caused by anxiety.”
Juan Carlos Gutiérrez Clavijo also pointed out: “It shouldn’t take long for our beloved parabola to arrive; I think it will touch USD 35-37k first and then clear strongly.”
However, Texeiro later added that, “it is very important the movement of the dollar, I think it is about to dump from an area where whenever it hits the bull runs in crypto start.”
Diego Morín, an analyst at IG, has pointed out that, “the main cryptocurrencies have found some ‘weakness’ in recent days, in part, due to the Easter holiday period, which has caused a certain drop in the volume traded. However, after the volatility since the outbreak of the war in Ukraine, we could be looking at a consolidation phase in the market.” On Bitcoin, he stressed that, “it is leaving behind the psychological support of $40,000, a level where we find many disputes between bidders and buyers. Now, the goal may be to seek a ‘pullback’ towards $40,000 dollars, but the possibility of a beginning of price strengthening is gaining strength.”
Bitcoin’s movement shows a similar correlation to Nasdaq-listed stocks of technology companies. Something that is not favorable for the cryptocurrency, according to analysts who believe that these markets will not perform well due to the economic crisis that the United States is going through due to the increase in inflation and taxes.
Although it is worth clarifying that not all of the current panorama is black for Bitcoin. Although there are large investors who are selling their BTC pushing down, others are doing the opposite. The Terra and MicroStrategy companies made multi-million dollar purchases of the cryptocurrency when it was trading close to 46,000.
Unlike the specialists who fear a price drop, the data analysis account Plan C believes that the holders could get a bullish movement for the cryptocurrency. This is because it estimates that it is the fourth time in history that BTC has managed to overcome a key metric, which calculates the awareness of those who hold it in the long term over those who do it for a short period. In the past, the capitalization of this data led to a price increase, a behavior that could happen again.
By Audy Castaneda
