Renowned macro strategist and financial writer Lynn Alden assessed the recent sharp correction in the Bitcoin market. According to Alden, the period of “heaviest pain” in the market has passed and BTC is now in oversold territory.
Alden summarizes the main reasons for the decline that has continued over the past four months with several headlines. He notes that retail investor demand remains weak in this cycle, with demand primarily coming from institutional channels (ETFs and corporate treasuries). He also noted that Bitcoin has recently moved in parallel with software (SaaS) companies that have experienced sell-offs due to artificial intelligence (AI), unfairly putting Bitcoin in the “same category” as them.
While the halving doesn’t have as much of an impact on the supply side as it used to, investors are psychologically pressured to focus on the cycle and sell early, he said.
Lynn Alden predicts that Bitcoin will not fall by 85-90%. According to the analyst, Bitcoin is at one of the lowest weekly RSI (relative strength index) levels in history, indicating that the asset is “oversold.”
“We’re much closer to the trough than we are to the peak. I think the worst of the selling pressure is behind us,” Alden said, painting an optimistic outlook. Alden described the recent rally in gold and silver as a “value discovery,” noting that gold is currently a bit over-enthusiastic, while Bitcoin is facing unwarranted negative sentiment. Alden added: “If I had to choose between Bitcoin and gold over the next couple of years, I would choose Bitcoin.”
*This is not investment advice.
