Bitcoin Has ‘3 Bullish Reasons’ To Rise After $68k Plunge – Analysis
Bitcoin (BTC)'s fall to multi-day lows is not in contrast to the broader BTC price rally, according to a new analysis.
In a recent market commentary sent to Telegram channel subscribers on May 28, trading firm QCP Capital dismissed recent “supply stress.”
QCP Capital: BTC price drop is “blinking” at peak.
QCP Capital argues that bitcoin bulls have little to worry about when it comes to rising BTC prices.
The 2% overnight BTC price spike that resulted in the unsustainable exchange Mat Gox coin withdrawals from wallets does not guarantee a rethink in the market.
“This morning's BTC movement triggered a sell-off from the Mt. Gox cold wallet below 68k,” the analysts wrote.
“However, these supply concerns may be on a broader trend towards the end of the year.”
QCP highlighted what it calls “3 bullish factors” for continued confidence in Bitcoin's strength going forward.
These are focused on crypto, political support for US presidential candidates and the future of ethereum exchange-traded funds (ETFs), focused on the strong performance of US stocks.
Crypto is seeing unprecedented political support in the US (a bill passed to create regulatory transparency for digital currencies, the SEC's ETH spot ETF, Trump's apparent support with Biden may follow suit).
All three reasons for optimism are still in their infancy, with Ether ETFs not yet officially trading after an unexpected approval by US regulators earlier this month.
Bitcoin “carrying the energy flag”
QCP is far from alone in seeing a bright second half of 2024 for BTC price action.
RELATED: Bitcoin Loses Key Resistance as BTC Price Drops Below $68K
Financial research firm Fundstrat Global Advisors is one of the biggest corporate entities when it comes to Bitcoin this year, predicting $150,000 per coin by the end of the year.
Individual traders will continue to increase until June, when, according to one person, it should bring a new all-time high of $ 95,000.
“Bitcoin holds a bullish flag, even as Mt. Gox moves a boatload of coins,” another prominent trader, Jelle, continued the day's short-term trend.
“The market is limited – but if we get above $70,000 again, it will quickly turn into a strong one. Until then, patience, but it seems strong.
The accompanying chart shows a possible sudden move due to a consolidation period coming to an end.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
