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Bitcoin’s Bullish Phase Delay: Insights from Capriole Investments
A shift to a positive phase for Bitcoin appears to be further away than initially projected according to quantitative Bitcoin and digital asset fund Capriole Investments' latest report. The report highlighted the current uncertainty surrounding Bitcoin's market behavior, suggesting that, despite promising signs of a new macroeconomic paradigm, Bitcoin doesn't appear ready to undergo a positive shift.
A Muted Response from Bitcoin
Despite the US equity market enjoying an upswing and the Federal Reserve nearing the close of its most stringent monetary constriction phase, Bitcoin’s performance seems to remain lackluster. Capriole's analysis infers that market stakeholders are bracing for a downward dip in Bitcoin prices towards the $25,000 region or possibly lower, indicating a need for more time for the evolving macroeconomic context to solidify.
Bitcoin Fails to Break Resistance
Capriole’s founder, Charles Edwards, expresses intrigue at the current dynamics of Bitcoin's struggle. While Bitcoin lacks upward momentum, the S&P500 soars with its most prolonged winning streak in recent memory, and the Federal Reserve executes the harshest monetary policy ever faced. Edwards speculates that a Bitcoin ETF approved by the U.S could shift this current narrative. However, Bitcoin continues to be entrapped beneath various timeframes' resistance thresholds.
Bitcoin's Potential Slide Towards Lower Support Levels
Charles Edwards predicatively listed the potential future levels of support: “The anticipated support lines stand at $28K, $24K, and lower $20K gaps providing considerably larger relative opportunities,” he says. As of now, the Wyckoff method portrays 'distribution' as the leading factor driving Bitcoin prices.
Bearish Trend for Bitcoin Emerges
“Breakdown in Low Timeframe Technicals: The $30K support level has failed, leading to a new bearish trend taking hold,” Edwards commented further. It’s important to note that Capriole isn't alone in predicting a gloomy short-term outlook for Bitcoin, with various market analysts expecting deteriorating market conditions before any significant upward trend emerges.
