- Bitcoin hits a new monthly low
- An analyst said Bitcoin is still bullish on a macro timeframe
- Raoul Pal also believes Bitcoin is still poised for more appreciation in the longer run
Bitcoin News Today – The price of Bitcoin has been on a steady downtrend over the past few days. Bitcoin has lost a considerable fraction of its value as legacy markets have undergone a heavy correction after a record rally. The world’s most dominant digital currency plunged to about $9,800 on Friday morning, as bears pushed the price of the digital currency lower.
This is a strong correction from the $12k local highs seen a few days ago and the $12,500 seen last month. However, Bitcoin is still bullish on a macro scale, as analysts are noting that the long-term chart and fundamentals of the digital currency remain skewed to appreciation.
Bitcoin (BTC) Price Today – BTC / USD
Bitcoin Is Still Bullish on a Macro Scale
Bitcoin (BTC) is still bullish on a macro timeframe regardless of the recent heavy downtrend, according to an analyst in the wake of the correction. The analyst shared a chart that shows Bitcoin printing a clear bounce off a pivotal macro level, and this means it has turned into support. Besides, Bitcoin is currently in a macro bullish market structure because of the break over the $10,500 level just a few weeks ago.
While talking about how the funding rate of Bitcoin on BitMEX and premium crashed as investors sold their holdings in mass quantities, the analyst said:
“$BTC funding and premium index reached the lowest it had been since March 19th yesterday… Except this time we’re retesting a multi-year S/R level with a confirmed bullish break in MS all the way up to the monthly chart…”
Besides, the Relative Strength Index of Bitcoin – a measure of the price action’s severity – reached notable lows during the massive declines on Friday. This indicator hit the lower level since the capitulation in March this year. After the crash in March, the digital currency saw a strong bounce that pushed it back to its pre-crash levels in just three months.
Raoul Pal also Believes Bitcoin Is Poised for More Rally
This analyst is not the only one that believes the benchmark digital currency is still poised for more rally in the longer run. The CEO of Real Vision – Raoul Pal – commented last week on the announcement of Jerome Powell on future inflation:
“Most people don’t understand the latter but is simply put, Powell has shown that there is ZERO tolerance for deflation so they will do ANYTHING to stop it, and that is good for the two hardest assets – Gold and Bitcoin. Powell WANTS inflation. I don’t think he gets true demand push inflation but he will get fiat devaluation, in conjunction with the other central banks all on the same mission.”