Timothy Peterson has postulated that Bitcoin could soon experience 30-day gains of 20 – 40%
His analysis is based on a significant drop on Bitcoin’s sentiment value to a threshold known to precede a pump
Mr. Peterson had earlier concluded that Bitcoin was undervalued with a jump to $11k likely in the near future
Crypto analyst Timothy Peterson has shared his latest analysis of Bitcoin where he explains that BTC could soon experience 30-day gains of 20 – 40%. His analysis is based on Bitcoin’s sentiment dropping to a level known to precede a major breakout in the upward direction. Mr. Peterson shared his analysis of Bitcoin via the following tweet and accompanying chart highlighting the aforementioned drop in Bitcoin sentiment.
Furthermore, in an earlier tweet, Mr. Peterson had pointed out that Bitcoin was undervalued and could witness a jump to $11k very soon. His analysis was based on the price of Bitcoin deviating far below its Metcalfe value as can be seen in the chart accompanying his tweet below.
Bitcoin Yet to Break Away from the Influence of the Stock Market
However, Bitcoin’s breakout to the upside has been put on hold due to the stock markets taking a bit of a nosedive this month. The S&P 500 is currently on a downtrend that began on the 2nd of September when it was valued at around $3,589. At the time of writing, the S&P 500 is trading at $3,352 indicating a 6.6% drop in a time span of a little over a week.
Checking the correlation chart on Coinmetrics reveals that Bitcoin’s 360-day correlation to the S&P 500 is at record high levels as seen in the chart below.
Summing it up, Timothy Peterson of Cane Island Alternative Advisors has identified that Bitcoin could be gearing up for a 30-day period of 20 – 40% gains. His analysis is based on Bitcoin’s sentiment dropping to levels known to precede a major breakout in the upward direction for BTC.
Additionally, he has proposed a situation where Bitcoin spikes to $11k in the near. This latter prediction is based on Bitcoin’s price deviating far below its Metcalfe value.
However, Bitcoin’s fate is firmly tied to that of the stock market as seen through its high correlation to the S&P 500. Therefore, for Bitcoin to experience a bullish move, the stock markets need also to be in the green.
As with all analyses of Bitcoin, traders and investors are advised to use adequate stop losses and low leverage when trading BTC on the various derivative platforms.