Bitcoin Trader Believes the Coin Has Bottomed, Contradicting Bloomberg Analyst’s Analysis
According to a trader, Bitcoin (BTC) may have hit its bottom, as indicated by data from CryptoQuant. This trader’s analysis differs from that of Mike McGlone, a Bloomberg analyst, who suggests that Bitcoin is still grappling with negative liquidity.
The Link Between Public Sentiment and Bitcoin Prices
The trader’s analysis is based on the connection between public sentiment and Bitcoin prices. Typically, when optimism is high, it signals a market peak. CryptoQuant utilizes Google Trends data and recent coin purchases to support this analysis.
Low Public Interest in Bitcoin Indicates Potential for Accumulation
Currently, the data shows low public interest in Bitcoin, indicating that the coin is far from reaching its peak. Based on CryptoQuant data, the trader suggests that this could be a favorable time for traders to gradually accumulate Bitcoin.
Possible Liquidity Challenges in Q4 2023
In contrast to the bullish sentiment of the trader, Mike McGlone’s recent analysis highlights potential liquidity challenges for Bitcoin as it enters Q4 2023. Shifting monetary policies globally and the risk of central banks raising interest rates could negatively impact sentiment and capital inflows to Bitcoin and other cryptocurrencies.
Backing Claims with Fed Fund Futures Chart
To support his claims, McGlone presents a one-year fed fund futures chart, suggesting that Bitcoin needs to adjust downwards in order to improve liquidity.
Potential Retracement to $10,000
In 2023, Bitcoin has shown relative stability alongside other risk assets. The Bloomberg analyst identifies strong resistance at $30,000 for Bitcoin but also mentions the possibility of a retracement to as low as $10,000.
Hot Take: Bitcoin Bottomed or Facing Liquidity Challenges?
While one trader believes Bitcoin has reached its bottom and suggests it’s a good time to accumulate, a Bloomberg analyst points out potential liquidity challenges for the cryptocurrency. As Bitcoin enters Q4 2023, shifting monetary policies and central banks considering interest rate hikes could impact sentiment and capital inflow. The trader’s analysis is based on the link between public sentiment and Bitcoin prices, using data from CryptoQuant. Conversely, the analyst supports their claims with a one-year fed fund futures chart. Bitcoin has shown stability but faces resistance at $30,000 and the possibility of retracing to $10,000.
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