A popular crypto analyst explains why Bitcoin is behind the worst and could be well positioned for a rally in the second half of the year.
What a continuation of the bull run speaks
Crypto analyst Nicholas Merten believes Bitcoin and the aggregated crypto markets are behind the worst. The price action may look modest, but BTC would probably not fall further – and the current cycle is not at all comparable to the 2017 bull run.
The analyst in a new video analysis:
“If we go back to $ 28,000 to $ 27,000 here, that’s going to be difficult for the markets, and it may take some time to recover from that, but I’m saying that in general, wherever we are now or where we’re going, even if we go back to that area, historically you shouldn’t sell at a 50% -60% discount.“
Because, so Merten: Historically, after such a correction, there has always been a so-called relief rally, i.e. a recovery rally in which the price has risen massively again. According to Merten, Bitcoin and the markets have been through the worst:
“We have the worst behind us. Whether it’s a bull market with a correction in the middle of the cycle or the beginning of a bear market, there still tends to be a rebound up at these 50% -60% points, so it’s best not to just sell in a panic.“
Bitcoin whales return
Another indication of the thesis that it will only get better for Bitcoin (to buy from Libertex or eToro) from here is provided by Lennard Neo, head of research at Stack Funds. This is a Singapore-based fund management company specializing in cryptocurrencies. Also, the researchers of stack funds believe: Bitcoin is “very close to the bottom”. Say: There may soon be a price recovery.
The scientist in a research note:
“Inflows for Bitcoin have shifted towards spot accumulation, as opposed to speculation, as investors focus their expectations on a longer-term horizon-suggesting a lower propensity to sell.“
Given the recent sell-off, Neo also sees significant levels of support around $ 30,000 – “with significant bids filling the offers.” Neo next:
“The strength comes from Microstrategy accumulating more bitcoins, and we’ve seen whales also re-enter the market as risk appetite returns. Short-squeeze hunters have also begun to dwindle in the near future as markets continue to gain a foothold in a consolidation phase.“
You can view the entire Stack Funds crypto report here.