en.bitcoinsistemi.com
Renowned macro strategist and financial writer Lyn Alden assessed the recent sharp correction in the Bitcoin market. According to Alden, the “biggest pain” period in the market has passed, and BTC is currently in oversold territory.
Alden summarizes the main reasons for the decline that has continued for the past four months under a few headings. He states that individual investor demand has remained weak during this cycle, and that demand has come mostly from institutional channels (ETFs and corporate treasuries). He also notes that Bitcoin has recently moved in parallel with software (SaaS) companies that have experienced sell-offs due to the impact of artificial intelligence (AI), and that it has been unfairly placed “in the same category” with them.
Although halving doesn’t have as big an impact on the supply side as it used to, investors are psychologically pressured to focus on this cycle and sell early, he says.
Lyn Alden predicts that Bitcoin will not experience an 85-90% drop. According to the analyst, Bitcoin is at one of its historically low weekly RSI (Relative Strength Index) levels, indicating that the asset is “oversold”.
Alden painted an optimistic picture, saying, “We’re much closer to the bottom than the peak; I think the worst of the selling pressure is behind us.” Describing the recent rise in gold and silver as “finding their value,” Alden noted that gold is currently a bit overly enthusiastic, while Bitcoin is facing unfair negative sentiment. Alden added, “If I had to choose between Bitcoin and gold for the next 2-3 years, I would choose Bitcoin.”
*This is not investment advice.