- Early in September, Bitcoin underwent a strong reversal that brought the coin to $9,800 from $12,500.
- The drop marked a crucial rejection of the $12,000 horizontal level on a weekly basis.
- There are some analysts that flipped bearish after Bitcoin formed that pivotal rejection.
- BTC is still in a positive spot on a macro frame, though, some have said.
- They point to how Bitcoin held the critical lows at $10,000s.
- $10,000 is a crucial psychological and technical region for the cryptocurrency as it marked previous highs and lows.
Why Is Everyone Bearish on Bitcoin?
Bitcoin’s drop earlier this month and the cryptocurrency’s subsequent inability to rally has worried some analysts. They think that the strong rejection at the $12,000 highs are a sign that the cryptocurrency remains in a macro range as opposed to a macro bull market.
This may not be the case, though.
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One trader shared the chart below on September 27th. It shows that BTC’s recent drop from the $12,000 highs to $9,800 was actually a macro retest of a pivotal horizontal level where the asset topped in February.
Bitcoin managing to confirm that level as support suggests that there’s more upside in the works.
On potential election risks, which some fear could sink global markets, the same analyst noted that he isn’t overly worried. He elaborated that once the uncertainty of the election passes, risk markets across the world should perform well as capital enters back into markets.
A further rally in the stock market is likely to aid Bitcoin, which has become correlated with legacy markets over the pandemic.
“We’re also headed into some serious positive seasonality going into Q4. It may be a rocky few months due to US Election but we’ve already had a deep pullback across risk markets. When the US Election is out of the way I think everything will explode. #BTC.”
Chart of BTC's macro price action since the start of 2017 with analysis by crypto analyst MacroCRG (@MacroCRG on Twitter). Chart from TradingView.com
Fundamentals Also Decisively Bullish
Underpinning this, the fundamentals of the Bitcoin space are more bullish than ever as human and financial capital enters the space en-masse.
Infrastructure is rapidly improving as Fidelity, PayPal, Microsoft, Visa, the Intercontinental Exchange, and others thrust serious capital behind crypto-assets. Billions are entering the space through the a16zs and Sequoias of the world. Further, Paul Tudor Jones, Jack Dorsey, Elon Musk, Peter Thiel, and Marc Andreessen are all siphoning their effort into the space as they expect growth.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusd Charts from TradingView.com Why Is Everyone Bearish? Analyst Asks as Bitcoin Macro Structure Still Bullish
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