Expert crypto analyst makes number of arguments in favor of Bitcoin growth
Renowned crypto enthusiast and analyst Will Clemente put forward a thesis That the main cryptocurrency is undervalued by the market at the moment. The expert gave several interesting arguments in favor of his statement.
Clemente pointed to the successful passage of backwardation and the negative financing of BTC futures contracts on cryptocurrency exchanges. Moreover, Bitcoin is starting to build dominance again, as its index reached its lowest value since 2018, bouncing back to around 40% at one point. The analyst also pointed to a number of bullish signals, citing the state of divergences and on-chain metrics as evidence.
Most interesting is Clemente’s opinion on more short-term signals. The expert believes that the increasing prevalence of obituaries for Bitcoin in the crypto space along with positive statements from the heads of major cryptocurrency spaces clearly indicate that the market has bottomed out.
Nevertheless, possible doubts still have a place in the issue of the U.S. monetary policy and, in particular, the Fed’s fight against inflation, which directly affects the quotation of cryptocurrencies. According to the analyst on this question, it is worth waiting for a decline in inflation after the series of aggressive rate increases by the regulator.
However, as always with the Fed, the action and rhetoric could bring many surprises in the world given the volatile macro and geopolitical backdrop.
Bitcoin (BTC) price review
For now, Bitcoin has managed to move beyond the important $21,500 price level. If the price holds until the opening of the U.S. stock market, with the S&P 500 continuing to move to $4,100, a rise can be expected. Otherwise, if the index goes into a correction, Bitcoin will likely go after it. The support levels at the moment are the $20,800-$21,000, $20,500-$20,000 blocks.
There is also speculation in the crypto space that bitcoin’s modest growth was fueled by a recent interview with Britain’s King Charles III, who is surprisingly knowledgeable about blockchain and the technology associated with it.
