Bitcoin has failed to maintain its bullish momentum and seems likely to continue 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 previous rallies, according to a major investor.
At the time of writing, Bitcoin is trading at $42,000 with a loss of 1% in the last 24 hours. Over the past week, the cryptocurrency still posted a 5% gain.
Bitcoin Whales makes bullish predictions
According to a pseudonymous Bitcoin Whale that goes by “Joe007”. social mediais the cryptocurrency ready for a bull run. The institutions that trade the US Bitcoin Exchange Traded Fund (ETF) will drive this bullish momentum.
In this sense, these institutions will likely suck the volatility out of Bitcoin by trying to make trades similar to traditional assets. Thus, Joe007 claims that this cycle’s rally will lack the excitement of 2017 and 2021, when BTC reached $20,000 and $69,000 respectively, causing euphoria among investors.
The Bitcoin whale stated:
I think we are about to witness the most boring rally in Bitcoin history. No retail-driven parabolic swings that excite degens/noobs and make headlines. Rather a slow, brutal ride up the ladder through professional accumulators removing layer after layer of paper holders.
The whale dismissed this possibility when asked if traditional institutions could fail in “taming” BTC due to the “systemic crises” in space. Furthermore, Joe007 dismissed the possibility that the cryptocurrency would not move 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 similar crash to 2008. The BTC whale added:
(…) unless there is a sudden complete collapse of trading (2008-style or worse). Then I see Bitcoin being dragged into a general panic crash, at least initially. Certainly possible, but difficult to assign a realistic probability.
Short term BTC price
In short terms, an analyst orphan on Daily On Balance Volume (OBV), pointing to further downsides for BTC. The chart below shows that this measure broke out of a trend channel during Bitcoin’s recent crash.
The OBV was rejected from a critical level and seems poised to trend upwards along with the price of BTC. The analyst stated:
Daily OBV still looks like it wants more downsides. It appears this may have been a lower high than we just entered.
Cover image from Unsplash, chart from Tradingview
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