bitcoin has been unable to maintain its bullish momentum and appears likely to extend its current downtrend. However, the long term remains positive, and in the coming months btc could reach its all-time high, but in a different way than in previous rallies, according to one major investor.
At the time of writing, bitcoin is trading at $42,000 with a 1% loss in the last 24 hours. Over the past week, the cryptocurrency still records a 5% gain.
bitcoin whales make bullish forecast
According to a bitcoin Whale pseudonym who goes by “Joe007” on social networks, the cryptocurrency is primed for a bull run. Institutions trading the US Spot bitcoin Exchange Traded Fund (ETF) will drive this bullish momentum.
In that sense, these institutions are likely to absorb bitcoin's volatility by pushing to trade similarly to traditional assets. Therefore, Joe007 claims that this cycle's rally will lack the excitement of 2017 and 2021, when btc hit $20,000 and $69,000, respectively, creating euphoria among investors.
The bitcoin whale stated:
I think we are about to witness the most boring rally in bitcoin history. There are no retail-driven parabolic swings to excite the degens/noobs and produce headlines. Rather, a slow, relentless upward push by professional accumulators peeling off layer after layer of paper media.
The whale dismissed the possibility when asked if traditional institutions could fail to “tame” btc due to “systemic crises” in the space. Additionally, Joe007 ruled out the possibility of the cryptocurrency not rising higher in the long term.
The only thing that could stand between bitcoin and a rally is a “low probability” scenario in which the traditional financial sector experiences a crash similar to that of 2008. The btc whale added:
(…) unless there is a sudden and complete trade crisis (2008 style or worse). So I can see bitcoin being dragged into a general panic crisis, at least initially. Certainly possible, but it is difficult to assign a realistic probability.
btc price in the short term
In short terms, an analyst pointed in daily balance volume (OBV), suggesting further downside for btc. The chart below shows that this metric broke out of a trending channel during the recent bitcoin crash.
OBV was rejected off a critical level and appears poised to trend up alongside btc price. The analyst stated:
Daily OBV still seems to want more downside. It looks like this might have been a lower high we just set.
Cover image from Unsplash, chart from Tradingview
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