A new analysis suggests that Bitcoin’s recent drop to multi-day lows does not affect the broader Bitcoin price uptrend. Trading company QCP Capital, in its latest market commentary sent to Telegram channel subscribers on May 28, dismissed recent supply concerns. QCP Capital argues that Bitcoin bulls have little to worry about regarding the Bitcoin price uptrend.
Why is Bitcoin Falling?
The overnight 2% drop in Bitcoin prices due to the movement of Bitcoin from the bankrupt Mt. Gox exchange wallets does not necessitate a rethink of the market trajectory. Analysts stated:
“This morning’s movement of Bitcoin from the Mt. Gox cold wallet triggered a sale below $68,000. However, these supply concerns will likely be part of a broader uptrend towards the end of the year.”
QCP highlighted what it called three bullish reasons to maintain faith in Bitcoin’s resilience. These include the strong performance of US stocks spreading to crypto, political support from US presidential candidates, and the upcoming spot Ethereum exchange-traded funds (ETFs). The optimism surrounding the Ethereum ETF process, which is still in its early stages, has not officially started following the surprise approval by US regulators earlier this month.
Notable Statements
QCP is not alone in seeing a bright outlook for BTC price movement in the second half of 2024. Financial research firm Fundstrat Global Advisors is among the most bullish institutional entities regarding Bitcoin this year, predicting $150,000 per cryptocurrency by year-end.
Meanwhile, individual investors believe momentum will increase towards June, reaching an all-time high of $95,000. Another popular trader, Jelle, commented on the short-term trend of the day:
“Bitcoin holds the bullish flag despite Mt. Gox transferring a boatload of coins. The market is in a range, but if we break above $70,000 again, it will quickly turn fully bullish. Until then, patience, but Bitcoin looks strong.”
The attached chart shows a potential bullish move that could emerge as the consolidation period ends.
