Veteran digital asset trader Peter Brandt believes Bitcoin [BTC] investors should go long while the coin is trading near $30,000. The analyst outlined his reasoning for the posture in a tweet where he proposed the same approach for NASDAQ and Gold. Brandt claimed that BTC had created walls around the fulcrum bottom.
When a market produces a H and S pattern, it forms a fulcrum bottom. This “congestion area” is characterized by repeated consolidation tests and flat sideways activity. Although this is an uncommon occurrence, it serves as a signal for a breakout or significant high returns.Â
Regardless of the aforementioned viewpoint, Bitcoin has increased by 10.71% in the last seven days. Despite the current favorable feeling, there have been predictions that the coin’s bullish outlook may end. However, CryptoQuant analyst JAYBOT stated that a significant retracement is unlikely to occur anytime soon. The analyst’s publishing was based on what was going on in the on-chain arena. Using the fund flow ratio as a foundation, JAYBOT saw a drop in whale selling pressure.
The fund flow ratio is the proportion of coins involved in exchange transfers to the total amount of money transferred inside the Bitcoin network. This metric’s high value indicated a lot of trade activity. Low values, on the other hand, indicate that HODL may be resolved.
At the time of publication, the fund flow has dropped. When compared to the 30-day Moving Average (MA), the current circumstances, according to the expert, were identical to the cycles that began the bull market. “In comparison to the past, when the 30MA of the fund flow ratio breaks out of the uptrend, a bull market for Bitcoin has begun,” JAYBOT stated. The current portion appears to be similar.”
Despite the earlier guidance, traders have been split between opening BTC shorts and longs. In reality, longs accounted for 50.19% of the total, while shorts accounted for 49.81%. The circumstance has left the BTC long/short ratio at 1.01 at the time of writing. The metric computes the total purchasing and selling volume of traders.
When the long/short ratio is high, it implies that more long positions have been opened, indicating a bullish sentiment. When it is low, it indicates that there are more short contracts than long contracts. However, because the ratio was slightly higher than one, it indicated that more traders have optimistic views. For the time being, BTC was approaching $31,000.
