- Bitcoin struggles to build a strong base for the next move
- Bitcoin still has support from buyers
- Many crypto traders and analysts are optimistic on the crypto markets
Bitcoin News Today – After the crash of Bitcoin (BTC) earlier this week, the digital currency has been struggling to establish a base for the next move. While many analysts are saying that Bitcoin (BTC) is showing weakness at the moment, a prominent crypto trader recently explained why he is buying the digital currency around the $8,500 to $8,600 mark, where it was trading a few hours ago.
Bitcoin Still Has Support from Buyers
On Friday, a prominent digital currency market commentator – LightCrypto – explained why he is acquiring more Bitcoin at the $8,500 to $8,600 range, almost 20 percent plunge from the recent year-to-date high of $10,500. In a tweet explaining his stance on BTC, the crypto commentator said that the digital currency has held up surprisingly well as the value of gold has dropped recently, plunging under $1,600 after closing in on $1,700.
Bitcoin (BTC) Price Today – BTC / USD
Gold depreciating, “a further sign of an emotional and capitulatory macro environment,” as BTC has effectively flatlined, LightCrypto implied, is a sign that the digital currency still has support from buyers.
/3 Gold is down the most since 2013, possibly sold to cover margin calls – this is a further sign of an emotional and capitulatory macro environment. In all of this, Bitcoin has held, losing less on the day than gold(!). pic.twitter.com/EDcIYNNCyQ
— light (@LightCrypto) February 28, 2020
He further added that Bitcoin has bid-side demand when he explained that while there have been “multi-million market sells into a confluence of potential support marks,” BTC has held, suggesting “latent buying interest.”
In a tweet, he said:
“The tuned-in market observer has also seen tremendous absorption of chunky multi-million dollar market sells into a confluence of potential support levels. This sort of spasticated action with price not budging downwards is indicative of a large, patient latent buying interest.”
This relatively optimistic technical picture has been underscored by a growing tide of bullish fundamental factors for BTC. He added that the forthcoming nature of the halving in May this year, the possible reduction of interest rates by the world’s central banks, and the fiscal stimuli that the world’s governments promised make “BTC’s inherent tilt overwhelming bullish.”
More Analysts Are Optimistic About Bitcoin
LightCrypto is not the only person that is optimistic in these bubbly digital currency markets. Recently, a writer shared a chart on Twitter, building off a comment from Josh Olszewicz of Brave New Coin that spikes in the volatility of the stock market have correlated with Bitcoin bottoms. The analysis of the writer revealed that any time the VIX – the volatility index of CBOE derived from S&P 500 options data – passed 30 in the past five years, Bitcoin has found itself at a macro or local bottom. He also explained several cases to back up his claims.
.@CarpeNoctom suggested spikes in the VIX correlate (spurious?) with Bitcoin bottoms. He's not kidding.
Times the VIX passed 30 in the past 5 years:
Dec 23, 2018: a week after BTC fell to $3,150
Feb 3, 2018: when BTC bottomed at $6,500
Aug 22, 2015: when BTC bottomed at ~$220 pic.twitter.com/vS7E60rNJp
— Nick Chong (@_Nick_Chong) February 27, 2020