Bitcoin’s unpredictability presents the potential for both a 50% loss and a 200% gain, as outlined by a strategist.
- It’s suggested that maintaining a nominal amount of Bitcoin indefinitely could be the smart move for believers in the cryptocurrency.
- Insights from On-chain Data: Whales and Retail Investors Fueling Bitcoin Buys
- Analysis of on-chain data indicates that both whales and retail investors have been actively accumulating Bitcoin.
The Strategic Move: Holding Bitcoin Long-term
Bitcoin’s price volatility, as indicated by Ryan Grace, head of wallet developer tastycrypto, implies that potential outcomes range from a 50% loss to a 200% gain. In his discussion with Coin Edition regarding Bitcoin’s recent market turbulence, Grace also highlighted that on-chain data reveals increased Bitcoin purchases by both whales and retail investors, a trend usually associated with upward price movements.
The Bullish Momentum: Bitcoin’s Path Beyond $35,000
As the price of Bitcoin surged beyond the $35,000 mark, supported by a positive Moving Average Convergence Divergence (MACD) and heightened trading activity, it demonstrated a renewed bullish momentum. This surge coincided with the approaching Bitcoin halving event, anticipated in less than 200 days, and the growing likelihood of a spot Bitcoin ETF approval. These factors underline the mounting confidence among investors.
Also Read: SEC Expected To Approve Spot Bitcoin ETF, Says Mike Novogratz
Navigating Potential Pullbacks: A Cautionary Note
While indicators currently align with a long-term bullish trend, Grace cautions that Bitcoin pullbacks can occur unexpectedly. However, he emphasizes that the approval of a spot Bitcoin ETF could unleash a flood of trillions of dollars managed by Registered Investment Advisors (RIAs), potentially serving as a bear deterrent or anticipation thereof.
In The Crypto Industry: Timeless Adage “Buy Bitcoin Now”
Tim Zinin, founder of Botanica School, a crypto educational platform, likens predicting Bitcoin’s price to forecasting weather during a storm. He echoes a prevalent sentiment in the crypto sphere: the best time to buy Bitcoin was yesterday, and the second-best time is now.
Bullish Resurgence: Bitcoin Overcomes $35,000 Resistance
Bitcoin bulls made a strong return, propelling BTC past the $35,000 resistance. This rally produced a classic bullish candle on the daily chart, signifying an optimistic outlook for the flagship cryptocurrency. Trading within the upper range formed during a period of consolidation following a recent 30% rally, Bitcoin’s future seems buoyant.
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