Disclosure: Members of our team may own positions in assets mentioned in this report. This statement is intended to disclose any conflict of interest and should not be misconstrued as a recommendation to purchase any token. This content is for informational purposes only and you should not make decisions based solely on it. This is not investment advice.
- Bitcoin’s price was nearly cut in half recently, largely driven by the major unwind in leveraged positioning and profit taking following one of BTC’s best runs in its history. While our long-term outlook for BTC remains bullish, the world’s largest crypto asset in is need of another catalyst to drive more interest and excitement around its prospects.
- Sentiment towards bitcoin and crypto more broadly has turned sour in recent weeks; in fact, the Crypto Fear & Greed Index is hovering near its lowest level since the March 2020 sell-off.
- So far we’ve seen strong support for BTC around $30k, but the latest price drop, rebound, and subsequent roll over puts bitcoin in a very precarious position; a major head and shoulders pattern has developed and may spell more short-term pain if BTC dives below $30k.
- One of the biggest macro headwinds to BTC is the deceleration in the growth of central bank asset purchases. Historically, bitcoin’s price tends to peak at roughly the same time as year-over-year growth in major central bank balance sheets.