Despite the growth realized by Bitcoin in January, many members of the crypto community continue to argue about whether BTC can update cyclical lows in the future.
All eyes on the S&P 500
Digital assets are under pressure from the stock market. Therefore, many members of the crypto community closely watched behind the health of the S&P 500 index. Bitcoin, followed by other coins, often repeat its movements. As of the end of January, the S&P 500 came close to resistance and broke through it. Index behavior like think members of the crypto community, opens up the possibility of further growth for bitcoin.
The entire financial world watching a single magic line pic.twitter.com/l9MVis8hjA
— Will Clemente (@WClementeIII) January 23, 2023
A fly in the ointment was added by American financier Michael Burry, who was able to correctly predict the collapse of the US real estate market before the global financial crisis of 2008-2009. He notedthat earlier in the history of the market there were already periods when positive, at first glance, the growth of the S&P 500 ended with the index reaching new lows.
According to the financier’s observations, a similar picture could be observed on the market in 2001-2002.
Many crypto investors sure Bitcoin is already past cyclical lows. According to this logic, the coin will not continue to decline even if the S&P 500 returns below the resistance line.
Investors are waiting for growth
Capriole Investments founder Charles Edwards thinksthat bitcoin has already hit a low amid the collapse of the FTX crypto exchange in November 2022. He also drew attention to the signals of the Hash Ribbons indicator, which helps to determine the cyclical bottom. Against the backdrop of BTC going up, the instrument gave a buy signal.
The last two Hash Ribbons signals both fired within $100 of each other and are now at a +10% return.
The dip to $16K likely would not have happened without the $10B FTX fraud which has now fully retraced. pic.twitter.com/tJwawArDnq
— Charles Edwards (@caprioleio) January 23, 2023
With Chalse Edwards’ Opinion That BTC Grows Ahead agreed Analyst Adrian Zdunczyk. He drew attention to the signals of the indicators, which indicate a likely continuation of the positive movement of the coin.
Many crypto investors also give a positive outlook for Bitcoin. In their opinion, this week the coin will be able to update the local maximum. Possible trajectory of cryptocurrency movement introduced a popular analyst in the crypto community who blogs under the nickname KALE O.
one last little bear trap before the giga-send would be fun pic.twitter.com/Tc7jitoZsa
— KALEO (@CryptoKaleo) January 24, 2023
Among the members of the crypto community who give a positive forecast for bitcoin, there are many supporters of the theory of BTC cyclicality, which is based on the impact of regular halvings on the behavior of the cryptocurrency. History suggests that the rest of the cycle – until the next halving, the coin can spend in a positive movement.
— Root 🥕 (@therationalroot) January 23, 2023
Also, market participants pay attention to the record volumes of the outflow of bitcoins from exchanges. Statistics show the unwillingness of cryptocurrency owners to part with their coins. The decrease in the number of sellers in the market is a positive signal for BTC.
The outflow of bitcoins from crypto exchanges. Source: GlassNode
At the same time, representatives of the crypto industry pay attention to the fact that BTC movements upset supporters of the theory, according to which the coin will continue to search for a cyclical bottom.
Negative bitcoin outlook
Not all members of the crypto community see the growth potential of the coin. For example, a negative forecast for bitcoin gives popular analyst, leading microblog under the nickname PROFIT BLUE.
In his opinion, the technical picture indicates the likelihood of the cryptocurrency descending to lows. Basic target for bitcoin analyst calls $10k level
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I’m Meagan Diaz, a news writer and author at World Stock Market. My main focus is on technology and stock market trends, and I’m passionate about helping readers stay informed on the ever-changing landscape. I bring extensive knowledge of the industry to my work as well as a knack for storytelling that makes my articles both accessible and engaging.