ARK analyst believes the Bitcoin rocket is ready to launch

GB Market Commentary 09/08/2022

by Marcus Sotiriou

After yesterday’s rally, Bitcoin fell today below $24,000. If Bitcoin consolidates around $23,000 or below for multiple days, then Bitcoin would have printed a lower-high, as it has not yet reached the previous high of $24,700 (as stated in yesterday’s market note).

However, crypto analyst Will Clemente points to the Coinbase orderbook, showing how bids for Bitcoin are stacked from $17,000 all the way down to $10,000. This shows significant demand from investors who are hoping to buy Bitcoin lower.

We saw a similar pattern in March 2020 where the orderbook was skewed to the bid-side. March 2020 coincided with a generational buying opportunity, as Bitcoin rallied from $3,000 to $65,000 in just over 12 months, giving a return of over 2,000%. Could we be setting up for yet another incredible buying opportunity?

ARK Invest believe so, claiming that BlackRock’s decision to integrate Bitcoin is a strong signal that institutions consider crypto – starting with bitcoin [BTC] – a new asset class could rally by 240%

ARK analyst Yassine Elmandjra has also noted that Bitcoin has managed to recover the 200-week moving average and if it can manage to hold above this level, it could be “on the verge of a massive rally. In its history, Bitcoin managed to breach the 200 WMA only seven times, each time starting a major rally after that. On average, Bitcoin would soar by 240%, according to ARK’s calculations.”

The Bitcoin 200-weekly moving average sits at around $22,950. Therefore, from ARK’s perspective, this level is key to watch out for.