Even as Bitcoin (BTC) has rallied over the past two weeks, analysts have kept their bearish biases against this market, claiming that it is only a matter of time before the cryptocurrency market sets a new low.
Tone Vays, a former Wall Street trader turned BTC analyst and educator, explained in an interview published near the turn of the year that he expects Bitcoin to retest $5,000s sometime in the next few months.
Related Reading: This Late Night Host Just Exposed Millions to Bitcoin, Again
But, according to a rather bullish cryptocurrency fund manager, bears are “deluded” and potentially “dishonest.” While this statement was made partially in jest and with lots of creative license, he laid out why there is some credence in the idea that Bitcoin bears may be irrational in presuming prices will return to the downside.
Bitcoin Bull Signals Galore
Adaptive Capital’s Murad Mahmudov, formerly of Goldman Sachs, recently wrote on Twitter that “bears are deluded at best, dishonest at worst,” drawing attention to the below chart which shows that BTC has crossed above a number of key moving averages. These are including but not limited to the 128-day simple moving average (SMA), 200-day exponential moving average (EMA), 50-week SMA, and 100-week SMA.
The point in this being that Mahmudov thinks that any bears that remain are foolish for holding their negative sentiment.
bears are deluded at best, dishonest at worst pic.twitter.com/mHedoqmSwL
— Murad Mahmudov (@MustStopMurad) January 14, 2020
This comes shortly after he drew attention to a simple textbook financial markets chart, which accentuated that Bitcoin’s trend is decisively positive due to simultaneous growth in the price, volume, and open interest seen in the asset’s markets.
Related Reading: Crypto Tidbits: Elon Musk Pokes Bitcoin Bear, Japanese Giants Delve Into Cryptocurrency Mining, Baidu’s Blockchain Beta
Macro Case Decisively Bullish
It isn’t only the technicals that are bullish on Bitcoin per Mahmudov.
Last year, the world’s most prominent BTC investors, builders, executives, and thinkers descended on Riga, Latvia to attend the Baltic Honeybadger 2019 conference. A religious experience for some, Honeybadger 2019 saw key individuals in the cryptocurrency space take to a stage to discuss the direction of this industry, the future of Bitcoin, among other ideas.
Trust in banks and traditional institutions is falling: Over the past decade, trust in traditional institutions has fallen off a cliff. Presumably due to the rise of political polarization and 2008’s Great Recession, the public has begun to trust mainstream media outlets and banks less and less. This underlying distrust and turmoil sets the stage for the implementation of a new trustless system, such as Bitcoin.
Global debt is swelling: While many hoped that the fiat system would be fixed in the aftermath of the Great Recession, it hasn’t. Consumers, corporations, and governments have only continued to take on more and more debt, with the global debt-to-GDP ratio nearly hitting 320%. The leverage needed to maintain this system is believed by many to be dramatically unsustainable, necessitating a “Plan B”, if you will, like Bitcoin or gold.
Macro investors turning to Bitcoin: Macro hedge fund managers and investors have begun to turn to Bitcoin, only accentuating its potential. For instance, former Goldman Sachs executive Raoul Pal has begun to pivot to Bitcoin, calling it an option on the future of finance, the best asset for Millenials at the moment, and something that is currently dramatically undervalued from a long-term perspective.
Related Reading: Ethereum’s Price Chart Just Printed This Extremely Bullish Signal
Featured Image from Shutterstock The post appeared first on NewsBTC.