Bitcoin: Why ‘this analyst and metric’ supports a BTC long

– BTC had formed a support point and this could trigger a breakout

– Some traders remained short despite a signal on the chain supporting a bullish return

Veteran digital asset trader Peter Brandt thought so Bitcoin [BTC] traders should go long since the coin is hovering around $30,000. In the tweet suggesting the same position for NASDAQ and Gold, the analyst explained his reasoning for the stance. According to Brandt, BTC had formed walls around the fulcrum bottom.

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Going to MN in the summer. Current Factor LLC positions with trailing stops
Long Nasdaq $NQ_F
Long gold vs. YPY $GC_F $G6J_F
Long Bitcoin $BTC
Long gold $GC_F
Long London Cocoa (not shown) $LCC_F pic.twitter.com/FH2o0LxZEz

— Peter Brandt (@PeterLBrandt) 13 April 2023

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Is BTC About to Explode?

A pivot bottom occurs when a market forms an H and S pattern. In this “congestion area” there are repeated tests of consolidation and flat sideways activity. Although this is usually a rare occurrence, it serves as a signal for one break out or significantly high returns.

Regardless of the aforementioned perspective, Bitcoin has been able to register 10.71% increase the last seven days. However, there have been suggestions that the coin may end its bullish outlook despite the current positive sentiment.

But CryptoQuant analyst JAYBOT mentioned that a notable retracement may not occur soon. The analyst based his publication on the fact that it happened in the chain. Using the fund flow ratio as a support point, JAYBOT pointed out that there was a slowdown in whale selling pressure.

Source: CryptoQuant

The fund flow ratio is the ratio of coins involving the exchange transfers to the total transfer within the Bitcoin network. A high value of this metric indicated a lot of exchange activity. Low values, on the other hand, suggest a possible solution to HODL.

At press time, the fund flow had decreased. The analyst also pointed out that the current circumstances were similar to the cycles when the bull market began compared to the 30-day moving average (MA). JAYBOT wrote,

“Compared to the past, when the 30MA of the fund flow ratio breaks out of the uptrend, a bull market for Bitcoin has begun. The current part also looks like this.”

Takes on the long conversation

Despite the proposal earlier started, traders have been torn between opening BTC shorts and longs. In fact, longs accounted for 50.19% while shorts went through with 49.81%. At the time of writing, the condition left BTC long/short ratio at 1.01 am. The calculation calculates the number of traders’ buying volume and selling volume.

Read Bitcoins [BTC] Price prediction 2023-2024

When the long/short ratio is high, it indicates a bullish sentiment as more long positions have been opened. In situations where it is low, it means that there are more short contracts than long ones.

Source: Coinglass

However, since the ratio was slightly above 1, it suggested that more traders have positive expectations. Currently, BTC came close to $31,000.