A widely followed crypto strategist believes that Bitcoin (BTC)’s long-term upside potential is unlimited, despite recent price declines.
Pseudonymous analyst Pentoshi tells his 801,000 followers on social media platform
“For BTC I wanted to start with what I consider the worst-case scenario. Let’s say $48,000-$51,000, essentially 20-25% lower.
And in this scenario, people should become more bullish as the price goes lower [goes] because the benefit increases. But again, let’s call that maximum absorption.
Hard to imagine now, but not outside the realm of possibility. It is the place where I could allocate the maximum.”
According to Pentoshi, the current macro landscape suggests that it is only a matter of time before the Federal Reserve begins to ease monetary policy – a situation that has led to massive Bitcoin bull markets in the past.
He also says that with the launch of Bitcoin Exchange-Traded Funds (ETFs) earlier this year, more people are now vying for exposure to BTC. He further predicts that other countries will follow in El Salvador’s footsteps and start accumulating
“The upside is not limited, however, as we will soon enter a period of heavy printing again.
So I see BTC as separate from the altcoin market, in that it will most likely rise forever via ETFs, and with a finite supply and people competing for it, including more nation states in the future.
Altcoins will have completely separate cycles in my opinion.”
The top trader concludes his Bitcoin outlook by saying that parabolic rallies have occurred in the past, even before the existence of ETFs or the accumulation of countries like El Salvador.
“BTC can do its own thing for months, and that was before ETFs and 401k, + nation states.”
At the time of writing, Bitcoin is worth $62,047.
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