In the past week, Bitcoin has continued to record new daily lows, culminating in a nearly eight-month low of just under $86,500 on Thursday. Market expert Shanaka Anslem, however, offers a contrarian perspective, labeling the current downturn as an “engineered collapse” and presenting a bullish argument despite the prevailing bearish sentiment.
According to Anslem, Bitcoin’s correction of nearly 30% from all-time highs has triggered widespread panic selling. However, contrary to this atmosphere of fear, the data tells a different story.
Furthermore, the Bitcoin network’s hash rate has reached all-time highs even as the price has dropped, a sign that miners are confident in future prospects and are investing in their infrastructure.
Additionally, he contends that there has been a notable acceleration in stablecoin inflows, with $70 billion in exchange-traded fund (ETF) infrastructure ready to absorb panic selling.
“The math does not lie,” Anslem emphasized, referencing various technical indicators that collectively indicate potential upside. The Pi Cycle remains green, and none of the thirty historical signals indicating market tops have been triggered.
Meanwhile, the Market Value to Realized Value (MVRV) ratio sits in mid-range territory, with on-chain metrics reflecting a classic mid-cycle shakeout.
He suggests that market participants have “artificially” thinned liquidity by 50%, triggering a cascade effect designed to maximize fear among retail investors.
The fear and greed index currently stands at 15, indicating extreme fear. Historically, such levels have marked significant buying opportunities for long-term investors.
The reality, he asserts, is that the post-Halving supply shock, coupled with increasing institutional demand, creates an asymmetric market setup. According to Anslem, while retail investors are selling off their positions in fear, institutional players are discreetly accumulating Bitcoin.
Featured image from DALL-E, chart from TradingView.com
