Bitcoin’s Bullish Momentum May Continue in the Long Run
Bitcoin’s recent downside trend may continue in the short term, but a large investor believes that the cryptocurrency will eventually reach its all-time high in the coming months. As of now, Bitcoin is trading at $42,000 with a 1% loss in the last 24 hours, but it still maintains a 5% profit over the previous week.
Pseudonymous Bitcoin Whale Predicts a Different Kind of Rally
A well-known Bitcoin whale named “Joe007” predicts that the next Bitcoin rally will be different from previous ones. According to Joe007, the bullish momentum will be driven by institutions trading the US spot Bitcoin Exchange Traded Fund (ETF). These institutions are expected to trade Bitcoin similar to traditional assets, which will reduce volatility and create a slow and steady upward movement.
Joe007 states that this rally won’t have the same excitement as previous ones, such as when Bitcoin reached $20,000 in 2017 and $69,000 in 2021. Instead, it will be characterized by professional accumulators gradually buying up Bitcoin from weak hands.
The Role of Traditional Institutions and Potential Risks
When asked about the possibility of traditional institutions failing to control Bitcoin due to systemic crises in the financial sector, Joe007 dismisses the idea. He believes that unless there is a major crash similar to the one in 2008, Bitcoin will continue to rise in the long run.
However, Joe007 acknowledges that a complete meltdown in traditional finance could initially drag down Bitcoin along with it. But he considers this scenario to have a low probability.
Analyst Points to Further Downside for BTC in the Short Term
An analyst examining low timeframes suggests that Bitcoin may experience further downside in the short term. The Daily On Balance Volume (OBV) indicator broke out of a trending channel during Bitcoin’s recent crash, indicating a potential decline.
Despite this, the analyst notes that the OBV is rejected from a critical level and could trend upward along with the price of Bitcoin. This suggests that the current downside may be temporary.
Hot Take: Bitcoin’s Next Rally Will Be Slow and Steady
According to a prominent investor, Bitcoin’s next rally will lack the excitement of previous ones. Instead of rapid parabolic swings driven by retail investors, this rally will be characterized by professional accumulators gradually buying up Bitcoin. While short-term trends may indicate further downside, the long-term outlook remains positive. However, there is a low probability of Bitcoin being dragged down in a general panic-crash, similar to the 2008 financial crisis. Overall, Bitcoin’s price may experience fluctuations in the near term but is expected to reach new all-time highs in a different fashion than before.
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