Veteran digital asset trader Peter Brandt believes Bitcoin (BTC) investors need to go long while the coin is trading near $30,000. The analyst outlined his reasons for the posture in a tweet where he proposed the same approach for NASDAQ and Gold. Brandt claims that BTC has created a wall around the fulcrum.
When the market produces an H and S pattern, it forms a fulcrum. This “lockdown area” is characterized by repeated consolidation tests and flat sideways activity. While this rarely happens, it does serve as a signal for a significant breakout or high return.
Despite the viewpoints mentioned above, Bitcoin has risen by 10.71% in the last seven days. Despite the current favorable feeling, there are predictions that the coin’s bullish outlook will end. However, CryptoQuant analyst JAYBOT states that a significant retracement is unlikely anytime soon. Analyst publishing is based on what is happening in the on-chain arena. Using the fund flow ratio as a foundation, JAYBOT saw a decrease in the selling pressure of the whales.
The flow of funds ratio is the proportion of coins involved in exchange transfers to the total amount of money transferred within the Bitcoin network. High scores for this metric indicate a lot of trading activity. Conversely, a low value indicates that the HODL can be completed.
At the time of publication, the flow of funds had decreased. When compared with the 30-day moving average (MA), the current state of affairs, according to experts, is identical to the cycle that started the bull market. “Compared to the past, when the 30MA flow rate ratio came out of an uptrend, a bull market for Bitcoin has started,” said JAYBOT. The current portion seems similar.”
Despite previous guidance, traders have been torn between opening short and long BTC. In fact, long accounted for 50.19% of the total, while short contributed 49.81%. This state of affairs has left the BTC long/short ratio at 1.01 at the time of writing. The metric calculates the total volume of merchant purchases and sales. When the long/short ratio is high, it implies that more long positions have been opened, indicating a bullish sentiment. When it is low, it indicates that there are more short contracts than long contracts.
However, since the ratio is slightly higher than one, it indicates that more traders have an optimistic outlook. For now, BTC is close to $31,000.