Following macroeconomics correlations, the cryptocurrency analyst known as CoinsKid believes that Bitcoin (BTC) is set for one last dump to the weekly 20 EMA price zone — of around $28,000 — before it could take off to a pump, as posted on August 7.
Some of his followers look at this bold prediction with skepticism, pointing to a “bearish sentiment” in general.
Checking the Fear & Greed (F&G) Index by CoinMarketCap, the sentiment is neither bearish nor bullish, but absolutely neutral — registering a mark of 50, right in the middle of the F&G chart, which reflects recent price action of BTC lateralization.
Despite the negative comments from his followers and neutral sentiment from this index, CoinsKid seems convinced of his own analysis. In his tweet, the expert draws a triangle in the weekly Bitcoin chart — where one price candle equals one week — showing an important decision zone for BTC.
According to this short post, Bitcoin should retrace to its 20-week exponential moving average (EMA), located around the $28,000 price zone. Then, after the retrace, he expects a pump to the $40,000 zone and above.
Bitcoin macroeconomics and the dollar index (DXY)
In a deeper analysis also posted on August 7, CoinsKid, correlates Bitcoin price action to the dollar index (DXY). Explaining that when the DXY goes down, BTC usually goes up — and he firmly believes that the dollar is going down, in a trend continuation.
The video also shows invalidation points for this analysis, as well as target points where the expert expects to realize his profits.
Coinskid also bases his bullish analysis on a comparison to technical analysis (TA) patterns from 2020, before BTC had one last dump, just to start the massive Bullrun that took its price to $69,000 in 2021.
Bitcoin price analysis
Meanwhile, BTC was, by press time, changing hands at the price of $28,940, suggesting a decline of 0.31% on the day, but having recovered after a bigger retrace a few hours ago.
All things considered, the digital asset’s ability to meet the above analyst’s expectations will depend on further developments related to Bitcoin, as well as the general sentiment on the wider crypto and macroeconomic landscape.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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