Bitcoin has not shown any definite signs of a breakout in the short term as the market has been hit with low volatility of late, with price movements not looking very encouraging to market analysts.
Following a brief surge that saw the firstborn crypto rally to $23k this week, the asset appears to be seeing a sharp descent to the $18k zone as we near the end of the month. Some key analysts have chipped in their views.
Analyst believes BTC bottom will be unexpected
With BTC technical indicators suggesting bearish trends in the short-term zone, market sentiments have not been on the bright side for the asset class, nor for any other digital asset in the space. With most people looking out for a bottom soon, a notable crypto market analyst has noted that BTC is likely to bottom when investors least expect it.
“Bitcoin market cycle bottoms almost never occur when everyone agrees,” said Kevin Svenson, “and it’s unlikely to happen when everyone gets their preferred price. Bitcoin always surprises us.” He mentioned that his guess would be in the “middle” of what market players expect.
On the other hand, internationally recognized analyst, Justin Bennett has made some definite remarks on what to expect from BTC. Bennett highlighted a bearish pattern setting up for BTC which could see the asset plummet to as low as $8,500 in the near term.
Now, while Bennett admits that his trendline is not very significant, given previous performances, the analyst pointed out that BTC is in “uncharted territory” in this current bear market, as stocks appear to have fallen deeply as well due to large part to macroeconomic conditions. These are unprecedented situations, and Bennett admits that a surprising downturn could be upon us.
With a value of 18, the Crypto FGI does not indicate a very favorable outlook
Additionally, the Crypto Fear and Greed Index has a value of 33, indicating “fear”. The market sentiment as assessed by the FGI has remained at the extreme fear zone for a few months now due to the uncertainties and anxiety the current Crypto Winter has pumped into the market.
While an FGI value of 18 does not indicate a very favorable outlook for the Crypto market, it is important to note that the FGI was at a low of 8 mid-June when the crypto markets felt the coldest. The improvement follows the brief rallies assets were able to muster at the outset of this month.
The Coinbase Premium Index indicates the buying pressure on US institutional investors and has been relatively weak of late, with a value of -0.07. Additionally, the Fund Market Premium has a value of -29, showing that investors in BTC funds and trusts have weak buying sentiments. As of press time, BTC trades at $22,648, down by 2.44% in the past 24 hours.