Bitcoin threatens to travel to long-term low range before “outright bullishness” triggers BTC price action.
“A capitulation is coming” for the Bitcoin (BTC) market, analyst Cole Garner said in his latest analysis for
BTC price “lower range” still on the table.
Bitcoin could still benefit from global liquidity trends, but what comes first may shock the average trader.
Examining the current on-chain phenomenon, Garner noted that liquidity is decreasing in the short term, which could be reflected in BTC price performance.
“On-chain liquidity is being strengthened. “I smell a surrender coming,” he summarized.
“This is a general prerequisite for full strength.”
The accompanying chart prints the Liquid Vision index, which measures, among other things, global central bank liquidity.
“Liquidity on-chain begins at its source: central banks. Liquid Vision is my lens. “I am ready to send a buy signal.” Garner wrote:
“If China doesn’t ring that bell, the Fed or Japan will have to do it. But more downsides may come first.”
The post mentioned recent policy changes by China’s central bank and the U.S. Federal Reserve. After announcing a significant stimulus package last month, they disappointed risk-asset traders this week by delaying it.
Garner also pointed to a decline in stablecoin supply, particularly Tether (USDT) and USD Coin (USDC), the two largest US dollar stablecoins by market capitalization.
“The lowest before $100,000? “It’s a complete facepalm,” he said.
“But: We have higher peaks. Optimistic market structure. “Even at the low end of the range where fear is at its peak, the structure remains strong.”
Still, other charts suggest this low could be below $50,000.
Bitcoin Kicks the Can at “Uptober”
As Cointelegraph reported, some market participants still expect BTC/USD to reverse its sideways movement before the end of October.
relevant: Bitcoin traders do not expect new highs until 200MA is supportedtea
One theory claims that China’s stimulus stockpile could trigger a new wave of capital inflows into cryptocurrencies.
Zooming out, our optimistic BTC price predictions also remain the same. This week, long-time trader Peter Brandt said that BTC/USD could reach $135,000 within the next year if critical support holds.
Bitcoin was trading at around $61,000 at the time of this writing, a monthly decline of 4%, according to data from Cointelegraph Markets Pro and TradingView.
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