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If Bitcoin price hits $27,000, Rich Dad Poor Dad author might start buying again, whether Bitcoin on the dip or not

Traders are using a variety of strategies to determine whether the Bitcoin price has bottomed out, but on-chain activity and derivatives data suggest that the situation remains highly uncertain. Traders have been trying to time the much-anticipated trend reversal since the Bitcoin price began its 48% correction to $30,000 on May 12. Along with $12 billion of long positions in futures were liquidated and so far, leading to extremely fearful trader confidence and sentiment.

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BTC/USD 4-hour chart | Source: TradingView

Bitcoin price has been on the dip or not? This sign hasn’t shown it yet

According to Glassnode, the Bitcoin market currently has three supply trends in play:

  • Short Term Holders are distributing
  • Long Term Holders are HODLing/Accumulating
  • Miners are Accumulating

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Source: Glassndoe

The Bitcoin market is a battleground between the bulls and the bears.

Following that, the community started looking for signs of trend reversal everywhere, including technical analysis, US CPI inflation data, and Bitcoin exchange deposits. However, two days later, Bitcoin broke the $40,000, although the move did not last more than six hours. Meanwhile, other traders deduced that Bitcoin needs to retest the $30,000 bottom before a stronger bounce.

Robert Kiyosaki, the author of Rich Dad Poor Dad, said that the good news is that if the price hits $27,000, he might start buying again. According to him, the problem is not gold, silver, or Bitcoin. The problem is the incompetents in government, Fed & Wall Street. Remember gold was $300 in 2000.

Call options allow the buyer to buy Bitcoin at a fixed price when the contract expires. Put options, on the other hand, provide the buyer with insurance and protection from price drops. Whenever market makers and professional traders are bullish, they will demand a higher premium on call options. This trend will cause the indicator to have a negative 25% delta deviation. On the other hand, if the downside protection is more expensive, the indicator will turn positive.

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30-day Bitcoin options on a 25% deviation | Source: laevitas.ch

A 25% delta deviation between 10% negative and 10% positive is generally considered neutral. This equilibrium was maintained until May 16, when Bitcoin lost the critical $47,000 support, which has held for 76 days.

When the market goes bad, so does the 25% skew indicator, and the cost of protective options spikes. Therefore, until the index establishes a more neutral pattern near the 5% level, it seems too early to call the market a bottom.

Traders also keep track of how much BTC has been active recently. This indicator is also really important when closely related to the price movement of Bitcoin.

The 500% bull run from October 1, 2020, and a peak of $64,900 on April 14, 2021, caused a massive increase in supply moving in the months leading up to the bull run. When this metric plummets, it shows that investors are no longer interested in getting in at current prices.

There are currently 2.2 million BTC active in the last 30 days, and this is significantly higher than the levels seen before October 2020. As things are currently stabilizing, traders should not let Bitcoin bottoming out, at least until the market is no longer relevant around the sub-$40,000.

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