One trader believes Bitcoin (BTC) has bottomed, referencing CryptoQuant data. His preview is despite a parallel analysis by Mike McGlone, a Bloomberg analyst, who notes that the coin is still struggling with negative liquidity.
The analysis is anchored on the link between public sentiment and Bitcoin prices. Often, high optimism signals a market peak.
CryptoQuant uses Google Trends data and coins purchased in the past month to support this preview.
Presently, data indicates low public interest in Bitcoin, suggesting that the coin is far from its peaks. Accordingly, the analyst, pointing to CryptoQuant data, suggests that this might be a good time for traders to gradually accumulate.
While the trader is bullish, a recent analysis by Mike McGlone points to possible liquidity challenges Bitcoin has to face as it steps into Q4 2023.
Specifically, monetary policy shifts across the globe and risks of central banks resuming their interest rate hikes might adversely impact sentiment and capital inflow to Bitcoin and crypto.
McGlone backed his claims with a one-year fed fund futures chart, suggesting Bitcoin needs to adjust downward for liquidity to improve.
Bitcoin has remained relatively firm in 2023, aligning with other risk assets. According to the Bloomberg analyst, Bitcoin has strong resistance at $30,000. However, there is a possibility of BTC retracing to as low as $10,000.