Bitcoin's (BTC) Scary Drop Might Be 'Weeks Away,' This Signal Says
07/11/2024 21:02
Hash Ribbon Capitulation signal registered in mid-May, top analyst Charles Edwards says
Contents
Seasoned cryptocurrency analyst Charles Edwards foresees more pain for Bitcoin (BTC) bulls in the coming weeks. At the same time, Spot Bitcoin ETF flows signal that TradFi investors are sure that the "buy the dip" moment has already arrived.
"Buy Bitcoin" signal might be "weeks away": Charles Edwards on miners' capitulation
The Hash Ribbon Capitulation signal, which is typically interpreted as an indicator of miners' pessimism, was confirmed in mid-May. It happened just prior to the worst Bitcoin (BTC) price drop since FTX's collapse, as noticed by Charles Edwards, renowned Bitcoin (BTC) investor and Capriole Investments founder.
The biggest Bitcoin drawdown since the FTX fraud and collapse to $15K has been preceded by a Hash Ribbon Capitulation signal which fired in mid-May. pic.twitter.com/chHWCelDiS
— Charles Edwards (@caprioleio) July 10, 2024
As such, the "buy" signal, i.e., the local bottom of the Bitcoin (BTC) price that will signal the end of the upcoming recession, might be on the menu, the expert added.
Based on current trends, he stressed, the much-anticipated bottom might be "at least a couple weeks away," Edwards added in a discussion.
His statements were echoed by Joe Burnett, Bitcoin (BTC) researcher and senior PM of Bitcoin-centric platform Unchained:
Feels like the best buying opportunity since $15k is here or a few weeks away.
As such, cryptocurrency markets should be ready for the lowest Bitcoin (BTC) prices since mid-November 2022, i.e., in 20 months.
The Hash Ribbon "capitulation" signal is confirmed once the 30-day moving average of the aggregated BTC hash rate is below the 60-day moving average.
Crypto natives expect worst, while TradFi already buys dip
In other words, it refers to the phase of miner pessimism when some BTC miners are shutting down operations as they find themselves out of profit.
At the same time, traditional investors, who are stacking Bitcoin (BTC) via newly launched spot BTC ETFs in the U.S., are already seizing the opportunity to "buy the dip."
Very interesting that tradfi crowds are buying the dips on BTC while crypto natives are mostly bearish and significantly derisk with the first major correction since 2023. https://t.co/Ov7VRU7a7f
— Arthur (@Arthur_0x) July 11, 2024
*This imbalance was noticed by Arthur Cheong of $500 million VC fund DeFiance Capital. He stressed that crypto natives remain bearish about Bitcoin (BTC), in contrast with the enthusiasm of Tradfi "newcomers."
The Bitcoin (BTC) price is changing hands at $59,016, up 1.85% in the last 24 hours. The Crypto Fear and Greed Index has recovered to 29/100 but remains in the "Fear" zone.