Bitcoin May Face Another Correction Despite “Stable” Fundamentals￼
Although numerous technical symptoms suggest the cryptocurrency has already touched the bottom of this downturn, a few analysts are still skeptical.
The analyst at Cathie Wood’s ARK Investment Management, Yassine Elmandjra, commented that danger belongings like Bitcoin would possibly keep to go through due to the damaging macro-economic environment.
To make clear her point, Elmandjra, in a latest Twitter thread, said that one can not rule out the prospect that the Federal Reserve will continue elevating interest costs within the face of coming near recession worries. In one of these scenario, it’s miles obvious that the charge will keep losing even though the most important cryptocurrency just had its worst zone in more than a decade.
She further mentioned that unrealized net losses (NUPL), which have fallen 17% below the whole cost basis, indicate that Bitcoin may see further corrections. As per her claims, NUPL may fall to about a 25 percent level.
For the first time, Bitcoin has fallen below its 200-week moving average (WMA) on a short- and long-term pricing basis. This means that the cryptocurrency king may be trading close to another “generational bottom,” according to Elmandjra.
However, despite the severe blow to the industry caused by the failure of prominent firms like Terra, Celsius, and Three Arrows Capital, Bitcoin’s core fundamentals—network security, network utilization, and holder behavior—”appear to be stable.”
Is The Bitcoin Bottom Near?
The “Puell Multiple” for Bitcoin, a crucial statistic linked to miners, has fallen to its lowest point in three years. Since the value of the freshly created coins is relatively low compared to average quantities, this would suggest that Bitcoin is likely bottoming out.
On the biggest spot markets, BTC is presently trading at $19,600 after rising by about 2.9 percent in the previous month.