• Bitcoin (BTC) price is currently at risk of dropping to $25,000, according to Capriole Investments.
• This is despite the current macroeconomic environment being more favorable for Bitcoin in the long run.
• Low timeframe technicals indicate a breakdown, with the target of this move being around $25K.
Bitcoin Price Risking $25K Dip
Bitcoin (BTC) price is facing a possible “breakdown” and distribution despite the impending new macroeconomic paradigm, according to quantitative Bitcoin and digital asset fund Capriole Investments. The current situation in U.S. equities has been positive but BTC has failed to react, leading Capriole to conclude that more time is necessary for the new economic reality to sink in.
Capriole’s Analysis
Charles Edwards from Capriole Investments noted that while the S&P500 has had its longest winning streak in years and the Fed has essentially paused rate hikes at what is now tightest monetary policy regime on record, it may not be enough for Bitcoin just yet. He concluded that utilizing Wyckoff’s method suggests that “distribution” currently characterizes BTC price action; if the magnitude of this downswing matches upswing then this could lead to a drop near $25K.
US ETF Could Turn Things Around
While predicting worse times before better for BTC prices, Edwards also suggested that US greenlighting a Bitcoin spot price exchange-traded fund could turn things around soon. However until then bitcoin remains pinned below resistance on both long and short timeframes; support levels are placed at $28K, $24K and low-$20Ks respectively with each offering significantly better relative opportunity than where we are today.
Other Market Participants Predict Worse Prices
Capriole Investment isn’t alone in their prediction of worsening prices – other market participants have also flagged important BTC price levels should watch out for next as they predict worse conditions before better ones arrive for BTC prices overall..
Conclusion
The current technical and fundamental indicators suggest that there is still some way to go before we see an upturn in Bitcoin prices – however with US greenlighting a spot exchange traded fund as well as support levels offered by various key points along its trajectory – there may still be hope yet!