A seasoned market expert shed light on Bitcoin’s current bearish performance, noting that the slight price correction that led to a significant liquidation of BTC positions is “sound and reasonable”, addressing concerns about its future potential.
Isn’t Bitcoin’s bearish movement a reason to worry?
Bitcoin’s recent upward rally seen earlier last week was short-lived as the largest cryptocurrency asset began trending downward, sparking speculation about its near-term performance among investors. investors. United States presidential election is just around the corner.
However, crypto analyst and trader, Doctor Profit, complaints the slight pullback is a positive development, suggesting an optimistic market signal for BTC. Before the next step higher, this cooling-off period could allow for consolidation, strengthening both short- and long-term holder sentiment.
According to Doctor Profit, a month ago, Bitcoin surpassed the previous high of $65,000thus printing a new high for the first time since its all-time high in March. This casts doubt on the much-discussed theory of higher highs and higher lows, which has been cited by many pessimistic analysts as evidence that BTC would continue to fall.
He pointed out that Bitcoin is currently down 8.8% from its Tuesday high. Considering the huge gain seen over the past two weeks, this decline is reasonable and a healthy correction.
This brief decline was due to a shift in market sentiment toward the possibility that the vice president Kamala Harris will win the next US presidential election, scheduled for November 4. “The market is simply integrating the effects of a possible Harris scenario, hence the dumping,” he added. Although Doctor Profit believes that Harris’ victory will not be very optimistic for crypto, he is confident that the former US president Donald Trump winning the elections will be very optimistic for crypto.
Whether Trump or Harris wins the election, the expert noted that it still won’t stop the Federal Reserve’s (Fed) commitment to continued printing. Accordingly, he urged investors to remain steadfast as nothing changes in the medium to long term since the overall trend is still upwards in the broader outlook.
OTC desks are running out of BTC
Doctor Profit also highlighted that the supply of Bitcoin on over-the-counter (OTC) desks has decreased significantly, indicating a growing shortage of BTC amid growth. demand from institutional and large-scale investors.
According to the expert, CryptoQuant claims that its OTC desk balance is significantly skewed, with 400,000 BTC in OTC, while several X accounts (formerly Twitter) reported that OTC offices attempted to buy BTC, suggesting that CryptoQuant may be falsifying the numbers for personal gain.
However, the BTC available on OTC desks is between 110,000 and 130,000, which implies that more than 300,000 BTC have been sold over the past few months since March. In general, this shows that consumers are forced to purchase directly from crypto exchanges, leading to noticeable and sudden price increases.
Featured image from Unsplash, chart from Tradingview.com
