Renowned trader Peter Brandt recently twitter.com/PeterLBrandt/status/1801389733597089944?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>provided information on possible market movements of the bitcoin price, projecting a challenging period followed by a significant rally.
This analysis comes as bitcoin's current trading behavior shows signs that could worry short-term investors.
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bitcoin's precarious path: possible decline and subsequent rebound
Brandt's analysis indicates that if bitcoin breaches the $65,000 threshold, it could trigger a further decline to around $60,000, potentially falling as low as $48,000.
bitcoin has so far struggled to maintain momentum above the $70,000 mark, showing a 5.6% drop over the past week to a current value of $67,170.
Despite the somewhat bleak near-term outlook, Brandt identifies a silver lining with the potential for a substantial recovery. His analysis outlines the immediate risks and hints at a rally, which he calls the “pump” phase that follows the “dump.”
<blockquote class="twitter-tweet”>
Interest Chart – bitcoin twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>$btc
Sometimes the most obvious interpretations of a graph work, most of the time graphs transform. But the most obvious is this:
Break above 65,000, then market rises to 60,000
Exceeding 60,000 mkt reaches 48,000 pic.twitter.com/JsXXVx2EhV
—Peter Brandt (@PeterLBrandt) twitter.com/PeterLBrandt/status/1801389733597089944?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>June 13, 2024
According to Brandt, this pattern typifies the volatile nature of cryptocurrency markets and could serve as a turning point for investors.
At the beginning of the year, he x.com/PeterLBrandt/status/1786013547992097117″ target=”_blank” rel=”nofollow”>similar observations when bitcoin was trading at $42,300, suggesting that these cycles are common features of bull markets and play a crucial role in distinguishing between novice traders and experienced investors.
JPMorgan warns of bitcoin-hyped ETF demand
Meanwhile, financial institutions like JPMorgan have examined the broader implications of market dynamics on bitcoin valuation. JPMorgan has recently highlighted its concerns about the overestimation of demand for bitcoin ETFs.
Their analysis suggests that much of the recent influx into bitcoin ETFs does not represent new capital, but rather a rotation from traditional cryptocurrency exchange portfolios toward “more regulated and seemingly safe” ETFs.
This shift has been driven by the “profitability, regulatory protection, and greater liquidity” that ETFs offer compared to conventional crypto portfolios.
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JPM SAYS twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>#bitcoin ETF DEMAND OUTSTANDING BY 2x –>
“Not all of these inflows represent fresh money.”
enter the crypto space as we believe there is likely
There has been a significant rotation away from digital wallets in
trades to the new spot bitcoin ETFs. This is due to the
cost… pic.twitter.com/l23mDv4Gmd
— matthew sigel, recovering CFA (@matthew_sigel) twitter.com/matthew_sigel/status/1801330452403265600?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>June 13, 2024
Furthermore, following the introduction of spot ETFs, there has been a notable decline in btc reserves on exchanges, indicating that while ETFs are becoming a preferred vehicle for bitcoin exposure, the increase Overall institutional demand may not be as strong as previously thought.
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JPMorgan estimates that actual net flows into bitcoin ETFs since January amount to about $12 billion, challenging the bullish narrative of massive institutional demand.
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