Investing.com
Published Sep 14, 2023 12:40PM ET
Jamie Coutts, a crypto market analyst from Bloomberg Intelligence, has issued a warning concerning Bitcoin’s vulnerability to contracting global liquidity. As of Thursday, Bitcoin was trading at $26,187, approximately 11% below the level that Coutts identified as the “exit signal” in mid-July.
Coutts shared on social media platform X that Bitcoin had reached its market “exit signal” around mid-July when it hit a price of $29,500. Since then, the trend model has remained negative. He suggested that a bullish trend for Bitcoin is only likely to return when the level of global liquidity expands.
However, despite recent fluctuations in the US liquidity index, Coutts argued that these signals are essentially noise unless there is a meaningful push higher. This increase is unlikely to occur without a policy change from the Federal Reserve, which Coutts does not foresee happening in the short term.
On a potentially positive note for the crypto markets, Coutts mentioned that the anticipated approval of a spot Bitcoin exchange-traded fund (ETF) in the US could serve as a long-term catalyst. However, he cautioned that demand for digital assets from institutional investors is unlikely to significantly increase until liquidity rises.
This warning comes as Bitcoin displays a traditional technical pattern suggesting a decline in prices. According to Rekt Capital, a popular crypto analyst, Bitcoin is close to completing a full double top pattern, having experienced fatigue near the $30,000 mark. The analyst previously predicted that if this pattern develops fully, BTC’s value could drop to approximately $22,000.
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Written By: Investing.com
