Economist Alex Krüger Says These Two Conditions Could Solidify Bitcoin (BTC) Bottom at $30,000

A closely tracked economist and trader is unveiling two conditions that he believes could strengthen the case of a Bitcoin (BTC) bottom at $30,000.

Alex Krüger tells his 128,600 Twitter followers that $30,000, a key psychological level for the top crypto asset by market cap, is starting to look like the bottom of its downtrend.

Track live crypto price of 10000+ coins!

“Good odds that [it] was the bottom for a long while. $30,000 tapped and defended.”

However, Krüger says that two crucial developments must happen to decrease the odds of another sell-off event.

“For that, we will need two conditions:

#1 weak CPI [consumer price index] number on Wednesday

#2 LUNA systemic risk addressed pronto.”

For the second condition, Krüger is referring to the plunging value of TerraUSD (UST), a stablecoin designed to be pegged to the US dollar. This week, the value of UST crashed to as low as $0.69 before slightly recovering to its current value of $0.83.

The economist calls the collapse of UST a systemic risk because the value of the stablecoin is tied to Bitcoin (BTC) and decentralized finance payment network Terra (LUNA).

Over the last few months, the Luna Foundation Guard (LFG), a non-profit organization built to support the Terra ecosystem, accumulated more than $1.6 billion worth of Bitcoin in order to back UST. BitInfoCharts shows that the LFG has recently emptied the content of its BTC wallet.

Related:  Solana (SOL) Sees Potential Wipeout Based On Bearish Technical Indicator

Even if these conditions are satisfied, Krüger highlights that a BTC bottom does not guarantee the start of a new bull run.

“*Long time* here is weeks, maybe all of May, or BTC $35,000-$36,000. The dominant themes remain: hawkish Fed and following stocks. Check the volume on the daily (zoom in on your chart). Such outsized volume is generally observed at bottoms.”

Source: Alex Krüger/Twitter

At time of writing, Bitcoin is valued at $31,088, up nearly 4% in the last 24 hours.

Check Price Action

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines


Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Amelia Murphy/Shutterstock/Natalia Siiatovskaia

Download MAXBIT Android App, Your best source of all crypto news!

Google Play

Source link

Share this article: