Thursday, July 8, saw another bloodbath on Satoshi Street with Bitcoin (BTC) and altcoins coming crashing down in the early hrs. At press time, Bitcoin is trading 2 . 57% down at $32, 556 levels with a market cap of $608.
The world’ s largest cryptocurrency has been showing higher volatility over the last few weeks yet remains range-bound between $31, 000-$35, 000. Citing the Fibonacci retracement levels on technical charts, Craig Manley, chief market technician in Piper Sandler, points out essential support and resistance levels. Talking with CNBC, Johnson noted:
“We broke out in January. Some time ago, we made this peak. I actually would go back and put the retracement levels along with bitcoin, and when you see that, you can see that around 33, 000 to 34, 1000 is a very important retracement level”.
However , Johnson adds that BTC has already corrected over 45% from its peak in April 2021. Thus, he believes that will BTC is unlikely to correct further but at the same time, he or she does spot a prolonged period of consolidation. He notes that historically, these consolidation process have lasted for around one thousand days.
On the other hand, Blue Line Capital Leader Bill Baruch told CNBC that he’ s waiting for the next big opportunity to include more BTC to their portfolio.
“Give me $25, 000 on bitcoin, and I’d be buying more. I’ve been in the space since 2017. There is times where I’m in it, there’s times when I’m not really, I totally exited through early this year, ” he added.
BTC Funding Rates Damaging, Novogratz Stays Bullish
One bullish indicator for Bitcoin investors is that since the May correction, the particular Bitcoin funding rate on perpetual futures has remained negative. Positive funding prices usually indicate the market tops while negative funding prices are followed by price jumps.
#Bitcoin funding rates on Everlasting Futures markets have been regularly negative since the Sell-off in-may.
The last period funding rates remained damaging for such an extended period of time was in Mar-Apr 2020.
Live Chart: https://t.co/pjP4J54Wwl pic. twitter. com/QTR3jKDhYN
— glassnode (@glassnode) July 9, 2021
Speaking of these types of recent developments, Wall Road veteran and Galaxy Electronic CEO Mike Novogratz spoke about how Bitcoin is at the middle stage of the emerging chilly war between the U. Ersus. and China. With China and taiwan declaring war on BTC and crypto, the U. S. hedge funds have continued to accumulate it within big numbers.
" We are combining here between $30K-$35K, " says @Novogratz on #bitcoin. " Asia sells it off, and then the U. S. buys it back…. China has declared war on #crypto as part of this broader cold war that people are getting into. " pic. twitter. com/U5YuAzSJr4
— Squawk Box (@SquawkCNBC) July 8, 2021
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