The whole crypto space is in the grip of fear as prominent industry leaders are projecting that BTC may see a significant downfall soon.
Although several technical signs suggest the cryptocurrency has already touched the bottom of this downturn, some analysts are still skeptical.
The analyst at Cathie Wood’s ARK Investment Management, Yassine Elmandjra, commented that risk assets like Bitcoin might continue to suffer due to the unfavorable macro-economic environment.
To clarify her point, Elmandjra, in a recent Twitter thread, said that one cannot rule out the prospect that the Federal Reserve will continue raising interest rates in the face of approaching recession concerns. In such a scenario, it is evident that the price will keep dropping even though the biggest cryptocurrency just had its worst quarter in more than a decade.
She further mentioned that unrealized net losses (NUPL), which have fallen 17% below the whole cost basis, indicate that Bitcoin may see further corrections. As per her claims, NUPL may fall to about a 25 percent level.
For the first time, Bitcoin has fallen below its 200-week moving average (WMA) on a short- and long-term pricing basis. This means that the cryptocurrency king may be trading close to another “generational bottom,” according to Elmandjra.
However, despite the severe blow to the industry caused by the failure of prominent firms like Terra, Celsius, and Three Arrows Capital, Bitcoin’s core fundamentals—network security, network utilization, and holder behavior—”appear to be stable.”
Is the BTC bottom near?
The “Puell Multiple” for Bitcoin, a crucial statistic linked to miners, has fallen to its lowest point in three years. Since the value of the freshly created coins is relatively low compared to average quantities, this would suggest that Bitcoin is likely bottoming out.
On the biggest spot markets, BTC is presently trading at $19,600 after rising by about 2.9 percent in the previous month.