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Veteran commodity trader and analyst Peter Brandt has taken to Twitter to share a Renko chart related to the flagship cryptocurrency – Bitcoin.
This Japan-originated chart shows that both Bitcoin’s rise to $65,000 and its decline that has been going since April have been strong trends.
Will Bitcoin keep declining, despite regaining $30,000?
Peter Brandt has presented a Renko chart, which first appeared in Japan, and, according to Brandt, is best for staying with a trend.
The chart shows that the rising trend for BTC stopped at the peak in April – the $64,863 reached on April 14 – and the chart has been negative since then.
Renko charts, originating in Japan, are probably the most useful for staying with a trend and not getting whipped around by shorter-term volatility. As shown for $BTC #Bitcoin, the trend from $6,000s to $60,000s was steady. So has been the decline since April pic.twitter.com/BLi8LpKviy
— Peter Brandt (@PeterLBrandt) July 20, 2021
“Bitcoin is not in a good position short-term”
According to the data provided by the CryptoQuant analytics vendor, things do not look well for Bitcoin. The “quick take” shared by the company and the chart show that Bitcoin spot reserves on exchanges are increasing. Derivative reserves are decreasing, which signifies that profit taking is occurring. Stablecoin reserves are also increasing.
However, in another report CryptoQuant states that the amount of stablecoins on exchanges remains close to its recent all-time highs. Since there is still a lot of liquidity on trading venues, the report says, it could be waiting to be deployed into Bitcoin in the mid- or long term.
If there was a bear market, these stablecoins would be withdrawn, a CryptoQuant analyst believes.
On Tuesday, the company also stated that Bitcoin is not in the bear market at the moment.
“Bitcoin fundamentals look well”
Head of MicroStrategy (the first publicly traded company that started accumulating Bitcoin last year) Michael Saylor has tweeted that “Bitcoin fundamentals have never been better”. Among he mentioned, the power of miner network and breadth of institutional & individual investors.
Digital Assets director at VanEck asset manager, Gabor Gurbacs, also believes that Bitcoin is doing well, even despite losing over 50 percent from its April all-time high.
He stated that since early 2020, when the pandemic began, Bitcoin has surged from the $3,000 level, reaching a whopping $65,000 this year. In this background, the $30,000 price for Bitcoin is a positive sign.
Gurbacs does not believe that Bitcoin is in a correction now, he reckons that BTC has managed to get ahead of itself. According to him, institutions may be waiting for the $25,000 range to get back in the market.
Bitcoin dropped below $30,000 for the first time since last month. What factors should investors be taking into account when it comes to crypto? @gaborgurbacs says there's two key perspectives. pic.twitter.com/zicQ0Lebbp
— Cheddar News 🧀 (@cheddar) July 21, 2021