Although Bitcoin (BTC) is still trapped below the psychologically important $ 20,000 mark, the further prospects for the market-leading cryptocurrency are “neutral to positive” when it comes to the influential asset management ARK.
As ARK Investment Management writes in its current market report “Bitcoin Monthly”, several important indicators point to an early bottoming of BTC.
ARK Managing Director Cathie Wood – probably the most important venture capitalist in the industry – has convincingly stuck to Bitcoin despite the current crisis in the crypto market.
In the current Bitcoin monthly report, Wood confirms this conviction, because its chief analyst David Puell comes to the conclusion based on several key figures that the path is not far away until BTC / USD returns to the uptrend..
“The Bitcoin price is down 70% from the current record high and is now below or exactly on some of the most important brands, including the 200-Week Moving Average, the realized price, the cost point of long-term investors (LTHs), the cost point of short-term investors (STHs) and the record high of 2017,” the report explains. And further:
“A price level under these brands is very atypical and signals an extremely oversold condition. Only four times in history has the Bitcoin price been below these important brands for longer.“
According to this, the majority of the losses would have to be over by now, only isolated key figures such as the MVRV are still waiting for them to reach the absolute low point before it can go up again.
“Historically, there has always been an absolute low point when the MVRV of short-term investors has exceeded the MVRV of long-term investors,” as ARK explains.
“However, this condition has not yet been met, which suggests that it is potentially still going down a little.“
In general, Wood sees little reason to worry, because so far Bitcoin has mastered the extraordinarily difficult global economic situation solidly.
In the current company podcast “In the Know”, she evaluates the further prospects for BTC as “neutral to positive”.
“At first we are waiting for a few more signs of soil formation, but of course you can only tell in retrospect exactly where it took place. We haven’t seen any signs of concern in the last couple of days, that’s good,“ Wood concludes.