Cryptocurrencies have been starting to form local bottoms in recent days. Still, some analysts are not losing hope. In today’s article, we will convey the positive views of two analysts on Terra (LUNA) and Bitcoin (BTC). Here are the details…
Analyst draws attention to “nostalgic” Terra price action
According to analyst Tony M., Terra’s LUNA price is showing surprising on-chain and technical comparisons to BitTorent Token’s 2021 low, which caused a 10x bull run. Terra’s LUNA price is undoubtedly disappointing for the crypto community. Old investors are suffering a devastating loss, and new investors are taking a double hit from trying to buy bottom amid the massive sell-off in May 2022. Terra’s LUNA price is currently trading at $1.58. However, traders should be aware that the price of LUNA, like most cryptocurrencies, is trading against BTC.
But its chart against BTC points to a straight line. Additionally, the Relative Strength Index also drew a straight line, attracting attention from both bears and bulls. Contrary to what many traders believe, the original LUNA/BTC (also known as LUNA Classic) is still actively traded. On June 27, Santiment’s On-chain analytics indicators showed a transaction flow of $500 million. Its total market cap was briefly labeled as $1.25 billion. The volume profile is now 50 percent lower on average, at $569 million.
LUNA similarity with BitTorrent
“Crypto traders can remember when the BitTorrent token witnessed a similar sell-off in August 2020. The BitTorrent company also had a controversial news-related incident from mid-August 2020 to January 2021 that drove vendors crazy,” he says. Traders lost hope as the BTT token was traded. The token is pegged at $0.00000001 and the Relative Strength index. The market cap of the Bittorent token has dropped to $272 million (half the current market cap of LUNA). Until February 2021, BTT saw a similar daily volume increase, briefly raising its market cap to $1.18 billion.
After days of consolidation, the thin flow in volume was the catalyst for a 1,000 percent bull run in just 60 days. The downtrend could be invalidated by the first break above 0.00000001 Satoshi (SAT). The breakout could be translated as the first buy signal of the future LUNA bull run targeting $26. A high swing results in a 1,000 percent increase from the current LUNA price.
Bitcoin comment by Bitwise manager
The chief investment officer of crypto asset manager Bitwise Investments explains his massive price target for Bitcoin (BTC) despite the ongoing bear market. Bitwise manager Matt Hougan said in a new Stansberry Research interview that Bitcoin could rise over 2,273% from its current price of $21,062 as he believes that gold will approach its market cap of more than $11 trillion.
Hougan said that he has seen Bitcoin’s market cap rise higher as BTC outperforms gold as a store of value asset. The top investment strategist at Bitwise says that Bitcoin is now in a “appreciation phase” similar to what gold experienced in the early 1970s, just after the US government ended the gold standard. The expert uses the following expressions:
[Bitcoin] is the new digital gold. Better than gold and anything gold tries to do. You can move it faster, harder to fake, easier to hide [and] harder to tamper with. This is the new gold… So it’s been the world’s best performing asset over the last 10 years and I think it has huge potential in the future because very few people still have it.
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