Bitcoin Flashes Historic Buy Signal, Analyst Urges Investors Not to Panic
Bitcoin has dropped below $70,000 to its lowest level in 12 weeks, but analyst Vetle Lunde sees a massive buying opportunity as technical indicators suggest a potential turnaround.
Bitcoin has dropped below the psychologically significant $70,000 level for the first time since August, reaching as low as $67,770. The cryptocurrency has now lost more than 21% from its late September highs, marking its lowest price in the last 12 weeks.
Technical indicators suggest opportunity
Despite the prolonged decline, prominent crypto analyst Vetle Lunde sees a massive buying opportunity. BTC has returned to its 200-week moving average, a long-term indicator tracked by traders to identify potential market bottoms. The daily Relative Strength Index (RSI) has fallen to 25, showing the market has become oversold.
This is a great place to buy BTC.
Lunde also noted Bitcoin has experienced the fifth-largest wave of ETF outflows on record, with exposure to 2x leveraged ETFs reaching a 2.5-year low. Speculative stuff is off, he said, urging investors not to panic.
Analysts divided on outlook
Zach Pandl, head of research at Grayscale, believes Bitcoin is in a much better position than earlier this year, citing the balance sheet of Michael Saylor's Strategy, the world's largest corporate Bitcoin holder. However, Bitcoin critic Peter Schiff warns that Strategy's financial obligations could create significant selling pressure if the price drops further.
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