What Happened: Burniske shared his prediction on X (formerly Twitter), saying: “Down to consolidation still looks like the most likely path to me.”
Been a solid run of many months for crypto, which leads CT to expect more of the same — misplaced my crystal ball, please DM if you find it, but down to consolidation still looks like the most likely path to me, scream as we may against that reality. pic.twitter.com/R4K3N1tw5J
— Chris Burniske (@cburniske) February 1, 2024
In doing so, Burniske doubled down on his previous prediction of “mid $20Ks,” though he did not share a price target in his latest post.
Observers expressed curiosity as to what led Burniske to arrive at this bearish outlook despite a broadly positive macroeconomic backdrop.
Rob Paone jokingly suggested “Recommend no more news like these, for the sake of the people, our industry (and our business).”
Why It Matters: In the past 24 hours, Bitcoin’s total liquidations stand at $53.6 million, with $40.9 million worth of long positions making up the bulk of liquidations. Bitcoin currently hover just above $42,000, 0.9% on the day.
Cryptoquant founder and CEO Ki Young Jo shared another bearish indicator in his latest post, stating that Bitcoin miners started selling Bitcoin.
However, he added that in the longer run, this is not a “long-term cyclical top signal.” Miners are mainly transferring to institutional investors through OTC desks, and this is “sell-side liquidity for sure and it might make the market go sideways for a few months.”
Another crypto investor sees Bitcoin at support and funding diving deeper into the negatives, adding: “It means the derivatives market is currently more bearish than the spot market.”
A Scimitar Capital executive indicated that Jan. 31 was the second-lowest volume day of trading for spot Bitcoin ETFs, adding: “If it can settle at around 20 million/day (5B/yr), then the ETFs will offset daily miner supply post-halving.”
The next Bitcoin halving will occur in April 2024.
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