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• “Strong support observed as Bitcoins get scooped up at $30,000” reflected Lennard Neo’s views on the current scenario of bitcoin.
• Bitcoin Whales seem to be re-entering the market.
• Inflows for Bitcoin have reduced significantly, and spot accumulation has become obvious as compared to speculation.
Bitcoin may be very close to its bottom, claims Lennard Neo, Head Of Research at Stack Funds. Stack Funds is a Singapore-based crypto-related fund management firm. Stack funds’ aims bridge the prevailing gap between the digital asset sector and the traditional, old-world market. A research analysis titled, “Strong support observed as Bitcoins get scooped up at $30,000” reflected Neo’s views on the current scenario of bitcoin. Bitcoin the previous week started strong at $38,000. A tweet posted by Elon Musk primarily influenced investor sentiments.
Fed Hawkish Shift Improves Market Sentiments
However, BTC was unable to hold above the $38000 levels and soon tumbled down to the lows of $29,470 on June 22, 2021. This was the lowest in the previous three months. BTC has lost more than 40% since its all-time highs of $63000 in April. The research analyst Lennard specializes in fundamental and technical analysis in digital asset investments. His report explained the Fed hawkish shift that lifted market sentiments that had been down because of the inflationary concerns. US equities seemed to have improved considerably as the report quotes, S&P 500 paring losses and closing up slightly over the week. Gold depreciated 4.5% for the week after shooting past $1,900.
Bitcoin Seems to Have Recovered After Multiple Squeezes
On the other hand, Bitcoin also closed lower as it once again failed to overcome the $42,000 resistance. The report adds that the token seems to have revived some ground after encountering multiple squeezes. Currently, the token is trading at $34,386.20 and is up by 2.26% in the last 24 hours. Lennard questions the price bottoming of the token in this wave. He starts with China’s reiteration of its crypto policies along with the $2.3 billion end-of-quarter Bitcoin options that are set to expire on June 25, 2021.
Whales Re-entering the Market for Lucious Returns
As the report says, a meltdown in long liquidations (7D MA) over the past few weeks has been noticed. Along with this, the Leverage ratio (grey line) falling to a 2-year low after dipping below that of March 2020 levels indicate cautious investor sentiments. Moreover, the inflows for Bitcoin have reduced significantly, and spot accumulation has become obvious compared to speculation. Investors seem to be looking for a long-term strategy, and a sell-off seems less likely to happen. Microstrategy has been found adding more Bitcoins to its portfolio. In addition, Bitcoin Whales seem to be re-entering the market. Lennard concludes that bitcoin may be very close to the bottom for this wave by putting all data together.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
