A closely followed economist and trader reveals two conditions he believes will occur in one Bitcoin (BTC)-Bound could strengthen at $30,000.
Alex Krüger shares with his 128,600 Twitter followers that $30,000, a key psychological level for the top crypto asset market capitalizationgradually looking like the end of its downtrend.
“Good chances for that [it] was down for a long time. $30,000 tapped and defended.”
However, Kruger says two key developments need to occur to reduce the likelihood of another selloff event.
For this we need two conditions:
#1 weak CPI [consumer price index] number on Wednesday
#2 Systemic LUNA risk addressed immediately.”
For the second condition, Krüger refers to the falling value of TerraUSD (UST), a stablecoin, which is to be pegged to the US dollar. This week, the value of UST plunged as low as $0.69 before recovering slightly to its current level of $0.83.
The economist calls UST’s collapse a systemic risk as the stablecoin’s value is tied to Bitcoin (BTC) and the decentralized financial payments network Terra (LUNA).
Over the past few months, the Luna Foundation Guard (LFG), a nonprofit founded to support the Terra ecosystem, has amassed more than $1.6 billion worth of Bitcoin to support UST. BitInfoCharts shows that the LFG recently updated the contents of their BTCWallet emptied.
Even if these conditions are met, Krüger emphasizes that a BTC bottom does not guarantee the start of a new bull run.
“Long time here are weeks, maybe all of May, or BTC $35k-$36k. The dominant themes remain: hawkish Fed and following stocks. Check daily volume (enlarge your chart). Such oversized volume is generally observed on soils.”
Source: Alex Krueger/Twitter
At the time of writing, Bitcoin is valued at $31,088, up nearly 4% over the past 24 hours.
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Source: Crypto News Deutsch