- Miles Deutscher returns to analyse Bitcoin, noting its strength above the $59,000 mark and the significant support at $60,000 preventing further price drops.
- Post-halving, Bitcoin’s reduced issuance may boost its value; Miles points to ETF flows and upcoming economic data as key drivers.
- He advises investors on timing and psychological preparedness for buying during volatility, stressing the need to stomach potential 30-40% market corrections.
Australian crypto analyst Miles Deutscher is back at his analytics desk after a week of conference events in Dubai. In his recent analysis, he highlights Bitcoin’s resilience and bullish trends from a weekly perspective.
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Bitcoin has maintained strength above the critical US$59K (AU$91K) support level, he said important here was the robustness of the US$60K (AU$92.8K) zone which acted as a significant defensive and buying area during recent market corrections.
60,000 now is kind of reminding me of what $20,000 was for Bitcoin back in January and February of 2023, obviously acting as that major pivot point for the subsequent rally.
Miles DeutscherMiles observes strong buying responses at this level, with significant purchases preventing Bitcoin’s price from closing below $60K, which he had previously indicated could lead to further declines to the low to mid $50Ks (AU$77.4K).
I said look for the weekly close; keep your eyes on not closing weekly below the 60K level. Probably going down to low to mid 50s. That didn’t happen. We responded nicely.
Miles DeutscherHowever, these declines did not materialise, and the price action has been positive.
Way Forward Post Halving Event
With the halving done and dusted, Bitcoin’s issuance is now once again halved, reducing the supply entering the market. Historically this has acted as a positive catalyst for its price.
Looking forward, Miles’ focus is on several macroeconomic factors that could influence Bitcoin’s near-term trajectory:
First, the ETF flows, which have shown positive trends and are a crucial price driver. Then of course, upcoming macro data like home sales, Q1 GDP, and PCE inflation data, along with earnings reports from major S&P 500 and tech companies. These are also potential influencers of Bitcoin’s market behaviour due to its correlation with the broader economic environment.
Bitcoin because it’s so correlated to the macro environment… It’s very responsive to global liquidity. It’s very responsive to the stock market.
Miles DeutscherTo Stack or Not to Stack: That’s The Question
One issue then remains around the strategy of accumulating cryptocurrency, especially Bitcoin, during periods of market volatility and uncertainty post-halving.
The question: Is it the right time to stack sats and alts?
Miles’ answer is affirmative – depending on your own circumstances – on the macro time frame at least.
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There is not the one right moment to buy but it’s rather about the individual risk level and tolerance for further dips. One needs the psychological readiness for market corrections of up to 40-60% in more volatile altcoins, which might even reach 70-80% in super risky assets.
If you’re buying today and you’re not willing to mentally handle a 30-40% correction, then maybe you have to readjust your thinking around the market.
Miles DeutscherCredit: Source link
