bitcoin The price continues its downward trend with the decrease of buyers.
Bloomberg analyst Mike McGlone made an assessment of the current situation.
Bitcoin Price Drops Below Critical Support
world’s largest cryptocurrency Bitcoin fell below the psychological threshold of $ 40,000 and is trading at around $ 38,000 at the time of this writing.
The downtrend is thought to be due to highly leveraged traders in the futures market. However, whales in the spot market are apparently waiting for some more declines to buy Bitcoin.
We see that 67.9% of all accounts on the Binance futures platform are long at the time of this writing.
According to the data, the Long/Short ratio for the Bitcoin/USDT pair also climbed to 2.08, climbing to the top of the last month.
In addition, the number of accounts holding 100 to 100,000 BTC in their wallets has been stable for the past month, according to on-chain data. Whales don’t seem to be interested in buying BTC at this level right now.
The buying stagnation in the spot markets can also be examined from the number of addresses that have just joined the network.
According to Glassnode data, the number of new addresses per week remained stagnant, averaging around 400,000.
McGlone: “We May Experience Another Milestone For BTC This Year”
Mike McGlone, one of the Bloomberg analysts, evaluated the current situation of Bitcoin as follows:
“It looks like BTC has a tough week ahead. Inflation is unlikely to decline unless risky assets decline.
Many assets will lose value in 2022 due to moves to reverse the highest inflation experienced in the last 40 years. But this year we may experience a new milestone for Bitcoin.”
#Bitcoin A rough week ahead – Inflation Unlikely to Drop Without Risk Assets Do:
Most assets are subject to the ebbing tide in 2022, on the inevitable reversion of the greatest inflation measures in four decades, but this year may mark another milestone for Bitcoin. pic.twitter.com/drnXyYea4F— Mike McGlone (@mikemcglone11) February 20, 2022
Mike McGlone said that he believes there will be new records with BTC becoming digital gold this year.
*Not investment advice.