ARK Invest ‘neutral to positive’ on Bitcoin price as analysts await capitulation

According to ARK Investment Management, Bitcoin (BTC), has a “neutral-to-positive” outlook despite being below $20,000

The American asset management company, American Asset Management Group, highlighted signs that BTC’s price action is nearing bottom in its most recent “Bitcoin Monthly” report.

Wood: “We are waiting for more capitulation signals.”

Cathie Wood and ARK, the CEO of Bitcoin, are two of Bitcoin’s most vocal advocates. They have remained open to BTC exposure as Bitcoin continues to plummet from its all-time highs.

According to the latest Bitcoin Monthly release, Wood, analysts, and David Puell, a research associate, this conviction is confirmed.

The report states that bitcoin is trading below or at 70% of its all-time peak.

“Trading below these levels in bitcoin is unusual and indicates extremely oversold conditions.” Bitcoin has only been traded at a price below these levels four times in its history.

If history is any guide, it would seem that most of the losses have already occurred. The MVRV ratio, which is the ratio of realized cap to the cost basis of entities hodling over different periods of time, is one indicator that has yet to reach absolute lows.

“Historically, global bottoms are when the MVRV short term holders exceeds that of long term holders,” ARK stated.

“This condition has not been met. This suggests the potential for further downside.”

Wood, in particular, has little reason to be concerned as Bitcoin markets weather a major historical storm.

In the Know, the podcast’s latest edition, July 1, she describes the firm’s overall attitude towards BTC as “neutral or positive”.

“We are still waiting for some capitulation signals, but time will tell if there are any. Wood stated that we haven’t received any other stress signals in the past few days so that’s also good.

Still, price downside is expected to continue

ARK’s position echoes the views of many market commentators.

Related: Is the price of BTC lower than ‘Wild Ride’? Five things you need to know about Bitcoin this week

Cointelegraph reports that consensus is growing around a drop of around $16,000. The majority of on-chain indicators are already at their lowest levels ever.

$BTC Lower highs every day. Pumps are low volume and appear corrective. Main target remains $15,800-16,200
— il Capo Of Crypto (@CryptoCapo_) July 5, 2022

“Historically, the 200 week MA has been a bottom indicator of BTC. “In this cycle, things might be a bit different,” Rekt Capital, a popular analyst and trader, told his Twitter followers last week. This was in continuation of the theme mentioned by ARK.

“Instead $BTC falling to the 200MA, it could form a macro range lower than it.” Peak opportunity will be found below 200MA.

According to Cointelegraph Markets Pro and TradingView, the 200-week MA is currently at $22,550. It has not stopped rising.

BTC/USD 1-week candle charts (Bitstamp), with 200MA. Source: TradingViewcom. You should do your research before making any investment or trading decision.