This Simple Chart Shows Why Bitcoin Remains Bullish on a Macro Scale

Bitcoin has sustained a strong drop over the past few days as legacy markets have undergone a strong correction after a record rally. The leading cryptocurrency traded around $9,800 on Friday morning as bears sent the cryptocurrency lower.

This is a stark correction from the $12,000 local highs seen just days ago and the $12,500 seen in August.

Bitcoin remains bullish on a macro scale, though, as analysts note that the asset’s long-term chart and fundamentals remain skewed to appreciation.

Related Reading: These 3 Trends Suggest BTC Is Poised to Bounce After $1,000 Drop

Bitcoin Remains Bullish on a Macro Time Frame: Analyst

Bitcoin remains bullish on a macro scale despite the recent drop, one analyst noted in the wake of the correction.

He shared this chart below, which shows BTC printing a clear bounce off a pivotal macro level, suggesting it has turned into support. Not to mention, BTC is currently in a macro bullish market structure due to the break above $10,500 just weeks ago.

Also discussing how Bitcoin’s funding rate on BitMEX and premium crashed as investors sold the cryptocurrency in mass quantites, the

“$BTC funding and premium index reached the lowest it had been since March 19th yesterday… Except this time we’re retesting a multi-year S/R level with a confirmed bullish break in MS all the way up to the monthly chart…”

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Chart of BTC's macro price action with analysis by crypto trader HornHairs (@CryptoHornHairs on Twitter). Chart from TradingView.com

Adding to this, Bitcoin’s relative strength index, a measure of the severity of price action, reached notable lows during the drop on Friday. The commonly-used indicator hit the lowest value since the March capitulation.

After March’s crash, BTC underwent a strong bounce that brought it back to pre-crash levels within three months.

Related Reading: There’s an “Unusual” Amount of Bitcoin Sellling Pressure From Miners

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