Bitcoin and the crypto market were still in the red last day. A rebound seems doable, but not guaranteed. At the time of writing, BTC is trading at $ 42,913 with a sideways movement on the 1-hour chart and a 20% correction on the weekly and monthly charts.
BTC on a downtrend on the weekly chart. Source: BTCUSD Tradingview
The crypto market is uncertain, but there are signals that traders and investors have recognized over the years that indicate buying opportunities. In addition to Peter Schiff and his pro-gold / anti-bitcoin tweets, CNBC ironically provided a relatively source of indirect alpha, their “chart master” Carter Worth.
On a segment for CNBC’s Fast Money, Worth claimed that the price of BTC could fall to $ 29,000. This would take BTC to a “lower end of support,” the analyst said after an initial plunge of 35% from its previous high around the $ 60,000 range and a subsequent decline of 55.30%.
The analyst said the price of BTC has fallen 11 + 35% since 2011, with the average down 55% except when the cryptocurrency has fallen 80%. The analyst said:
I think we support, there is fighting, but my guess is it will go lower.
Could the “Chartmaster” be right about Bitcoin?
The “Chartmaster” predictions are usually used by some members of the crypto community as a counter trade and as a “bottom signal”.
Even so, the cryptocurrency is critically supported, and BTC inflows into exchange platforms have increased alarmingly in the past few days.
Analyst William Clemente said yesterday, May 17th, the highest net inflow of BTC since March 2020 was recorded when the market collapsed on “Black Thursday”.
BTC inflows for exchanging platforms are increasing. Source: Glassnode via William Clemente
At the same time, the general sentiment in the market is bullish as BTC manages to hold the line for about a day. For example, futures traders showed “above confidence” that the price could continue to rise, turning the $ 45,000 resistance into support.
The financing rate on all exchange platforms changed to positive with a two-day increase from May 16-17. Clemente said:
Seems like BTC traders tonight are a little overconfident to stay long. Would like to see another flush and possibly get negative funding rates. But I don’t expect it.
Additional data from Clemente suggests that the amount of BTC liquid supply has increased to levels last recorded in 2019. As can be seen from the graph below, there appears to be a correlation between a downward trend in BTC price and liquid supply. When it is low, the price tends to go up and vice versa.
A recent Gallup survey showed that the number of investors owning Bitcoin has tripled since 2018. US investors are...