Analysts wonder whether Bitcoin bottomed out as BTC bears reduce their positions
- Over the past 24 hours, 69% of BTC taker flow came from bearish traders reducing their call positions on OKEx.
- Bitcoin analyst on Twitter admits to taking a break from BTC and trading in altcoins for their volatility in the current cycle.
- Bitcoin fear and greed index signals extreme fear, bearish sentiment takes over traders across exchanges.
Cryptocurrency market strategist Dave The Wave has projected a Bitcoin pullback to $20,000 in the ongoing correction. On-chain analysts argue that accumulation is on, though BTC price has plunged to $43,000.
Extreme fear grips Bitcoin traders, the asset continues downward trend
The fear and greed index is considered an indicator of trader sentiment across the cryptocurrency market towards Bitcoin. The indicator is signaling “Extreme Fear” among market participants.
Historically, excessive fear has resulted in Bitcoin trading well below its intrinsic value, and analysts consider this indicator as a gauge, and predict further correction in the asset’s price.
Charles Edwards, the founder of Capriole Investments, believes that Bitcoin’s correlation with S&P is strong. As the index has noted a drop, traders’ outlook on Bitcoin has turned bearish, represented by extreme fear in the indicator.
In the short-term, Bitcoin is a slave to the S&P.
— Charles Edwards (@caprioleio) September 20, 2021
Extremes in Fear & Greed result in ultra-high correlation.
Today we are in Extreme Fear.
Good news is a number of metrics suggesting S&P is near bottom. pic.twitter.com/D2evJGntg3
Seychelles-based cryptocurrency exchange OKEx recently shared statistics of its Bitcoin options on Twitter. The exchange noted a 69% taker flow from Bitcoin bears, aggressively reducing their positions ahead of an anticipated drop in price.
OKEx Bitcoin options statistics for September 20
As bearish sentiment penetrates the market, analysts on crypto Twitter admit to reducing their Bitcoin trading activity and increasing the size of their altcoin positions, owing to the relatively high volatility.
Dave The Wave, a cryptocurrency analyst and crypto influencer behind the Twitter handle @davthewave, has informed his followers in a recent tweet that he will change his bearish outlook on Bitcoin to bullish within two to three months.
Until then, the analyst is trading in altcoins.
Disinterested TA. Parabolas correct. Give it a couple of months and I'll be uber bullish once again.
— dave the wave (@davthewave) September 21, 2021
Why trade BTC when you can trade the extra volatility of alts.
Analysts are anticipating a further drop in the asset’s price. Daniel Joe, a cryptocurrency analyst and trader, states that $40,100 is the bottom for Bitcoin. Joe expects BTC price to recover after another $2 billion in market capitalization is wiped out of the asset.
Is 40.1k the bottom for #BTC?
— Daniel Joe (@DanielJoe916) September 21, 2021
I think it could be the bottom. Onchain trend remains #bullish, Wave 2 corrective following ABC wave structure, top of 30k to 40k trading range tested with a wick back up after a $2B liquidation wipe out. It’s early, so we need to watch closely.
FXStreet analysts predict a jump in Bitcoin price, set a price target of $51,000 level for the asset.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
