Bitcoin (BTC) falling to multi-day lows does not go against the broader BTC price upward trend, new analysis shows.
Trading company QCP Capital dismissed recent “supply instability” in its latest market commentary sent to Telegram channel subscribers on May 28.
QCP Capital: BTC price decline is a “blip” in the uptrend.
QCP Capital argues that Bitcoin bulls have little to worry about with the rising BTC price trend.
Mt. defunct exchange sparked a 2% drop in BTC price overnight. The movement of coins from wallets belonging to Gox does not guarantee stock on the market trajectory.
Analysts said, “This morning Mt. Gox cold wallet triggers selloff of BTC below 68,000,” he wrote.
“However, this supply instability is likely to turn into a larger trend towards the end of the year.”
QCP highlighted “three reasons for optimism” to continue to have faith in Bitcoin’s robustness.
This focused on the strong performance of US stocks spreading towards cryptocurrencies, the political support of US presidential candidates, and the use of the soon-to-launch Ethereum exchange-traded fund (ETF).
“Crypto is seeing unprecedented political support in the United States (with legislation passed to create regulatory clarity for digital currencies, a positive shift from the SEC on an ETH spot ETF, and Trump’s public support for Biden likely to follow). )” was considered.
All three reasons for optimism are in the early stages, with Ether ETF trading yet to officially begin following surprise approval from US regulators earlier this month.
Bitcoin “carries a bullish flag”
QCP is by no means alone in seeing a bright outlook for the second half of 2024 for BTC price action.
Related: Bitcoin Misses Major Resistance Reversal as BTC Price Falls Below $68,000.
Financial research firm Fundstrat Global Advisors is one of the most bullish on Bitcoin this year, predicting $150,000 per coin by the end of the year.
Meanwhile, individual traders expect momentum to return in June, hitting an all-time high of $95,000.
Another popular trader, Jelle, commented on the day’s short-term trend: “Bitcoin is holding a bullish flag despite Mt. Gox transferring a large amount of coins.”
“The market is range-bound, but if it gets above $70,000 again it will turn completely bullish. “I have to endure it until then, but I look strong,” he said.
The attached chart shows a potential impulsive move that could occur at the end of a consolidation period.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.