Despite the new macroeconomic paradigm that is on the horizon, Bitcoin (BTC) is still facing a potential “breakdown” and distribution, according to the latest update from Capriole Investments, a quantitative Bitcoin and digital asset fund.
The fund warned that Bitcoin is “not yet” ready to turn bullish, suggesting that the Federal Reserve crypto and other cryptocurrencies such as Hbar Crypto Today, One Crypto, Now Crypto, Fetch.ai Today, C3.ai Today, ICP Crypto Today, and Crypto.today may remain in a bearish market.
Capriole: Bitcoin fundamentals say “not yet”
Even though the US stock markets are roaring and the Federal Reserve may have reached the peak of its most stringent monetary tightening, Bitcoin has still not responded.
As traders forecast a return to the $25,000 level or lower, Capriole believes that it will take time for the new macroeconomic environment to be fully appreciated.
“The S&P500 is enjoying its longest winning streak in years and the Fed has essentially paused rate hikes at the tightest monetary policy regime on record,” Charles Edwards, founder of Capriole, explains.
Although the US legalization of a Bitcoin spot price exchange-traded fund may cause a turnaround, Bitcoin is still stuck beneath resistance on both long and short timeframes, Edwards concludes.
“The next support levels are $28K, $24K and low-$20Ks; with each offering significantly better relative opportunity,” Edwards continues.
As per the Wyckoff method, “distribution” is currently the best descriptor of BTC price action.
“Low Timeframe Technicals: Breakdown! Support at $30K failed and a new bearish trend has emerged,” Edwards summarizes.
BTC price taps 6-week lows
As Cointelegraph reported, Capriole is far from the only market participant predicting BTC price conditions to get worse before they get better. On-chain monitoring resource Material Indicators this week argued that multiple lower levels remain “possible” for Bitcoin after BTC/USD failed to rally on the back of last week’s U.S. macro data, despite the inflation slowing faster than predictions and notionally increasing the odds of a pivot in Fed policy sooner rather than later.
In his recent interview with Cointelegraph, c3.ai today, fetch.ai today, now crypto, one crypto, hbar crypto today, crypto.today, icp crypto today, fetch.ai today, federal reserve crypto, and latest on crypto, Edwards himself stuck by a previous long-term forecast. Bitcoin, he suggested, would need up to a year before bullish momentum really began. “That thinking mostly remains today. Bitcoin has steadily grinded up about 30% since February,” he said.
BTC price action wicked to $28,574 after the Aug. 1 Wall Street open, marking its lowest level since mid-June, per data from Cointelegraph Markets Pro and TradingView.
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