{"id":35494,"date":"2024-01-26T08:52:34","date_gmt":"2024-01-26T12:52:34","guid":{"rendered":"https:\/\/cryptocornercafe.com\/cafe\/?p=35494"},"modified":"2024-01-26T08:52:34","modified_gmt":"2024-01-26T12:52:34","slug":"bitcoin-price-head-fund-manager-predicts-opportunity-of-the-year-soon","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2024\/01\/26\/bitcoin-price-head-fund-manager-predicts-opportunity-of-the-year-soon\/","title":{"rendered":"Bitcoin Price: Head Fund Manager Predicts \u2018Opportunity Of The Year\u2019 Soon"},"content":{"rendered":"

Charles Edwards, the founder of hedge fund Capriole Investments, offered an in-depth analysis<\/a> of the Bitcoin market yesterday. His review offers a granular perspective on the aftermath of the historic ETF launches, the pivotal role of major players like Grayscale, and the interplay of market mechanics shaping Bitcoin\u2019s trajectory.<\/p>\n

Bitcoin Market Summary: ETF Launch<\/h2>\n

Edwards acknowledged the ETF launches as a pivotal moment, characterizing it as \u201cETF Mania.\u201d He emphasized the hindsight realization that the ETF launch triggered a short-term \u201csell the news event.\u201d Edwards elucidated, \u201cA portion of this can be attributed to the Grayscale outflows<\/a> of over $4B, approximately half of which was forced selling by the FTX bankruptcy estate<\/a> and another couple billion likely to cover Grayscale\u2019s debt obligations.\u201d<\/p>\n

However, he projects a shift in the outflow rate from Grayscale, stating, \u201cI expect the current rate of outflow will drop to a more sustainable trickle over the next few weeks (after another few billion out).\u201d Edwards also highlighted the end of Grayscale\u2019s multi-year lock-up period, allowing long-term investors to finally close their GBTC positions at market prices.<\/p>\n

Regarding Blackrock<\/a> and Fidelity ETFs, Edwards noted their significance, saying, \u201cThe brand names of these two behemoths in the traditional asset management space means every billion they bring in, adds an order of magnitude more credibility (and therefore flows) into Bitcoin and crypto as a whole.\u201d<\/p>\n

BTC Technical Analysis<\/h2>\n

In his high timeframe technicals (HTF) analysis, Edwards observed a strong rejection at mid-range resistance during the ETF launch. He pointed out, \u201cThe nearest HTF support at $35K would likely represent a great opportunity to get long for the 2024 Halving year (if we are lucky enough to get there).\u201d Edwards also mentioned, \u201cAlternatively, a strong close above $44K will likely see the trend continue to range highs ($60K).\u201d<\/p>\n

For low timeframe technicals (LTF), he dissected the December\/January consolidation and the $44K \u201cfakeout\u201d during the ETF launch. Edwards explained, \u201cFakeouts often resolve in price movements to the other side of the range, as we saw.\u201d He added:<\/p>\n

Therefore, the most interesting price point locally is $41K. A daily close above $41K would likely represent a downtrend fakeout and a swift return to range high at $44K (+). If we simply wick into $41K and start trending back down, that would be a great risk-off trigger for a potential move lower toward $35K HTF support.<\/strong><\/p>\n

Fundamentals: The Role Of On-Chain Data<\/h2>\n

Edwards underscored the importance of fundamentals and on-chain data in understanding market dynamics. He introduced Capriole\u2019s Bitcoin Macro Index, stating, \u201cThis Index includes over 50 of the most powerful Bitcoin on-chain<\/a>, macro market and equities metrics combined into a single machine learning model. This is a pure fundamentals-only value investing approach to Bitcoin. Price isn\u2019t an input.\u201d<\/p>\n

According to him, fundamentals have entered a period of slowdown which aligned with the near top at the ETF launch. \u201cThat fundamental slowdown continues today with price down -20% from the highs in January so far,\u201d Edwards remarked.<\/p>\n

Chart Of The Week<\/h2>\n

The hedge fund manager also introduced the Advance-Decline (AD) Line as a chart of the week. He explained, \u201cThe AD Line is calculated as the cumulative sum through time of each day\u2019s count of advances less declines.\u201d Edwards highlighted its relevance, stating, \u201cToday we are seeing the first such breakout since 2016.\u201d<\/p>\n

He drew parallels between the AD Line\u2019s breakout and Bitcoin\u2019s historical performance, noting, \u201cDuring these periods in 2013 and 2016, Bitcoin was also in a drawdown from all-time-highs (like today) and began two of its largest cyclical rallies in history.\u201d<\/p>\n

The Opportunity Of The Year<\/h2>\n

In conclusion, Edwards offered a nuanced outlook. He cautioned, \u201cBitcoin at $39-40K is not a screaming buy today.\u201d However, he projected, \u201cThe opportunity of the year likely awaits in the $32-35K region, which if we are lucky enough to see, will probably be the last time we ever see it.\u201d<\/p>\n

Edwards concluded with a forward-looking perspective, stating, \u201cPending that, we await patiently for a momentum breakout of $41K (aggressive) and $44K (conservative) for resumption of the meat of the primary 2024 trend. Up.\u201d<\/p>\n

At press time, BTC traded at $40,003.<\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

Charles Edwards, the founder of hedge fund Capriole Investments, offered an in-depth analysis<\/a> of the Bitcoin market yesterday. His review offers a granular perspective on the aftermath of the historic ETF launches, the pivotal role of major players like Grayscale, and the interplay of market mechanics shaping Bitcoin\u2019s trajectory.<\/p>\n

Bitcoin Market Summary: ETF Launch<\/h2>\n

Edwards acknowledged the ETF launches as a pivotal moment, characterizing it as \u201cETF Mania.\u201d He emphasized the hindsight realization that the ETF launch triggered a short-term \u201csell the news event.\u201d Edwards elucidated, \u201cA portion of this can be attributed to the Grayscale outflows<\/a> of over $4B, approximately half of which was forced selling by the FTX bankruptcy estate<\/a> and another couple billion likely to cover Grayscale\u2019s debt obligations.\u201d<\/p>\n

However, he projects a shift in the outflow rate from Grayscale, stating, \u201cI expect the current rate of outflow will drop to a more sustainable trickle over the next few weeks (after another few billion out).\u201d Edwards also highlighted the end of Grayscale\u2019s multi-year lock-up period, allowing long-term investors to finally close their GBTC positions at market prices.<\/p>\n

Regarding Blackrock<\/a> and Fidelity ETFs, Edwards noted their significance, saying, \u201cThe brand names of these two behemoths in the traditional asset management space means every billion they bring in, adds an order of magnitude more credibility (and therefore flows) into Bitcoin and crypto as a whole.\u201d<\/p>\n

BTC Technical Analysis<\/h2>\n

In his high timeframe technicals (HTF) analysis, Edwards observed a strong rejection at mid-range resistance during the ETF launch. He pointed out, \u201cThe nearest HTF support at $35K would likely represent a great opportunity to get long for the 2024 Halving year (if we are lucky enough to get there).\u201d Edwards also mentioned, \u201cAlternatively, a strong close above $44K will likely see the trend continue to range highs ($60K).\u201d<\/p>\n

For low timeframe technicals (LTF), he dissected the December\/January consolidation and the $44K \u201cfakeout\u201d during the ETF launch. Edwards explained, \u201cFakeouts often resolve in price movements to the other side of the range, as we saw.\u201d He added:<\/p>\n

Therefore, the most interesting price point locally is $41K. A daily close above $41K would likely represent a downtrend fakeout and a swift return to range high at $44K (+). If we simply wick into $41K and start trending back down, that would be a great risk-off trigger for a potential move lower toward $35K HTF support.<\/strong><\/p>\n

Fundamentals: The Role Of On-Chain Data<\/h2>\n

Edwards underscored the importance of fundamentals and on-chain data in understanding market dynamics. He introduced Capriole\u2019s Bitcoin Macro Index, stating, \u201cThis Index includes over 50 of the most powerful Bitcoin on-chain<\/a>, macro market and equities metrics combined into a single machine learning model. This is a pure fundamentals-only value investing approach to Bitcoin. Price isn\u2019t an input.\u201d<\/p>\n

According to him, fundamentals have entered a period of slowdown which aligned with the near top at the ETF launch. \u201cThat fundamental slowdown continues today with price down -20% from the highs in January so far,\u201d Edwards remarked.<\/p>\n

Chart Of The Week<\/h2>\n

The hedge fund manager also introduced the Advance-Decline (AD) Line as a chart of the week. He explained, \u201cThe AD Line is calculated as the cumulative sum through time of each day\u2019s count of advances less declines.\u201d Edwards highlighted its relevance, stating, \u201cToday we are seeing the first such breakout since 2016.\u201d<\/p>\n

He drew parallels between the AD Line\u2019s breakout and Bitcoin\u2019s historical performance, noting, \u201cDuring these periods in 2013 and 2016, Bitcoin was also in a drawdown from all-time-highs (like today) and began two of its largest cyclical rallies in history.\u201d<\/p>\n

The Opportunity Of The Year<\/h2>\n

In conclusion, Edwards offered a nuanced outlook. He cautioned, \u201cBitcoin at $39-40K is not a screaming buy today.\u201d However, he projected, \u201cThe opportunity of the year likely awaits in the $32-35K region, which if we are lucky enough to see, will probably be the last time we ever see it.\u201d<\/p>\n

Edwards concluded with a forward-looking perspective, stating, \u201cPending that, we await patiently for a momentum breakout of $41K (aggressive) and $44K (conservative) for resumption of the meat of the primary 2024 trend. Up.\u201d<\/p>\n

At press time, BTC traded at $40,003.<\/p>\n

<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-35494","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/35494","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=35494"}],"version-history":[{"count":1,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/35494\/revisions"}],"predecessor-version":[{"id":35502,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/35494\/revisions\/35502"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=35494"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=35494"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=35494"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}