Source: Unity Trading Group
Bitcoin (BTC) experienced a significant drop in value earlier this month, which led to a valuation loss close to $10,000 in the crypto coin’s price tag before getting on a few short rallies the past few days. And while signs indicate possibilities of a test to the $40,000 level, some experts remain optimistic.
One of the latest market experts to express positive views over Bitcoin’s behavior the past few weeks is Cole Garner, who took his insights to Twitter in a series of posts. “Suddenly, all of my favorite leading indicators are lining up long & strong,” tweeted the market analyst to his 41,900 followers and beyond. Garner first shared a screenshot of Bitcoin’s OTC transactions and pointed out a “full bull” pattern in its recent movements. “The more you think about it –, the more it makes so much intuitive sense,” the analyst then added.
Noted by Cole Garner were the signals coming from over-the-counter trading desks that saw a sudden increase in Bitcoin balance last week, corresponding to a more robust buying activity among clients. While OTC isn’t the only factor that determines price movement, it has been a significant factor in cryptocurrency analyses over the past few years.
Another signal Cole communicated on his Twitter thread was the combine volume delta (CVD) for Bitcoin whales, which sloped upward. Garner indicated that the movement caused by volume trades from the most prominent crypto investors on the planet indicated an infallible bullish movement signal. “This metric has evolved to be my go-to indicator throughout this bull,” Garner writes.
Bitcoin’s journey began thirteen years ago. Crypto experts indicate that over 90% of Bitcoin’s total value has already been mined in that short time. Pulling out the remaining one-tenth will be much more complicated as current estimations look at another 120 years before all Bitcoin gets into people’s hands. Digital scarcity has been one of the most vital factors to Bitcoin’s rising value. Currently, the world now has 18.89 million of these decentralized coins mined. The last few million will become the remaining frontier as the world will then move into trading these blockchain-based units of digital currency.
The recent Bitcoin dip affected the whole cryptocurrency market as other coins would also lose value as the significant token took a hit. Some experts point to the stock market drop as one of the crypto slowdowns. The day before Bitcoin and most cryptocurrencies dropped in value, the US stock market took a significant hit. Tesla ended up losing 6% in a single trading day. ARK Innovation also dropped in value, lowering to 5% of its previous day levels then to 12% the following week. There is also growing global unrest following the discovery of the COVID-19 Omicron variant, which has more mutations than the Delta variant. Still, many other indicators and factors remain debatable.
Following Cole Garner’s post, there has still been some level of discussion. While others remain adamant that these downtrends could be indicators of a significant uptrend, some believe that levels could drop more before stabilizing. Bitcoin’s support levels currently hold at $46,700 based on its 200-day moving average.