Alden Sees Opportunity for Bitcoin Bounce After Crash

Lyn Alden, a well-known value-based investor and analyst, believes that Bitcoin (BTC) is oversold after its recent crash. According to her, the majority of selling has already occurred, and sentiment towards BTC is unfairly negative.

Alden pointed out that during the market downturn, Treasury money market funds (mNAVs) were forced to sell off their holdings in software stocks and Bitcoin, contributing to the bearish pressure on the asset. Additionally, quantum computing fears and a four-year cycle test further exacerbated the pain. However, she sees this as an opportunity for BTC to bounce back.

Data from Glassnode supports Alden's view, showing that oil prices are signaling a potential shift in Bitcoin's price action. The correlation between WTI Crude Oil and BTC is often a precursor to changes in the crypto market, including shifts in price predictions and increased crash risk during commodity stress. Currently, oil prices are below their 50-day exponential moving average (EMA) resistance of $64275.25, with a MACD death cross at -659.0 and a neutral RSI of 35.27 confirming bearish momentum.