Closely followed macro analyst Lyn Alden says that Bitcoin (BTC) is likely approaching a “deep value” range as certain metrics start to signal a bottom is in.
In a new interview with Blockware Intelligence, Alden says Bitcoin’s current price range is presenting opportunities for market participants who have a long-term investment thesis on BTC.
“I think this mid-$20,000 area is super deep value. When you look at things like dormancy flow, a bunch of different on-chain indicators are kind of deep value. At the end of the day, you can have these wicks that go well below that if there’s kind of like a liquidity crisis. But overall, I think we’re kind of in that range where – I don’t know exactly where the bottom is going to be obviously – I think we’re in the phase where if you’re dollar cost averaging in or you’re layering in purchases, I think this is a good place to do it. I think trying to catch some sort of micro bottom is kind of a fool’s game.”
Alden says that Tether‘s (USDT) peg to the dollar struggling and then subsequently recovering as it did during the May 12th crypto correction could be a sign that the markets are ready to bottom out.
“Some things I’m watching for example, I was watching the Tether peg because it’s kind of a sign of liquidity. If that peg is struggling, in addition to whatever concerns people might have about the collateral, it’s a liquidity sign. The liquidity is being sucked out of the space so fast, so it’s hard for anything to rally. And when you start to see that recover to the extent that it recovers, that’s kind of a sign that maybe the worst is behind us and some projects will continue to bleed out, but maybe the highest quality things like Bitcoin, they may already have their capitulation in. It’s hard to say for sure.”
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The post Bitcoin in ‘Deep Value’ Area as One Metric Hints at BTC Bottom, Says Macro Expert Lyn Alden appeared first on The Daily Hodl.
