Real Vision analyst Jamie Coutts, discussing the future performance of Bitcoin (BTC), suggested that after a temporary correction, it is ready to continue its upward trend. Contrary to general expectations, the analyst spoke negatively about gold compared to Bitcoin, predicting that the largest cryptocurrency would resume its upward trend in the short term.
According to the Analyst, Bitcoin’s Path is Clear in Every Direction
Coutts, a former Bloomberg analyst, shared his views with followers on social media platform X, pointing to fundamental indicators that signal a bullish outlook for Bitcoin.
According to Coutts, Bitcoin has emerged from a bear flag formation that indicates significant upward movement potential in the short term. He noted that the current situation, often referred to as “blue sky,” which indicates a lack of general resistance, could increase the momentum of bull markets and lay the groundwork for a significant upward trend.
The analyst pointed to two critical technical indicators, the funding rate and the Relative Strength Index (RSI), to support his bullish prediction for Bitcoin. The funding rate, which represents the fees exchanged between long and short positions in Bitcoin’s perpetual futures contracts, has recently normalized and reached a balance. In addition, the RSI, a popular momentum indicator, has retreated from overbought levels, signaling that the recent downtrend could turn into an uptrend.
While Coutts acknowledges that long-term investors sold their BTC holdings after Bitcoin reached its all-time high (ATH), he predicts that demand from spot Bitcoin exchange-traded funds (ETFs) that opened in the US in January could balance the supply. According to Coutts, the extent to which ETF demand will meet this supply is likely to affect the direction and duration of the ongoing bull market.
Not as Optimistic About Gold as He is About Cryptocurrencies
The analyst had previously expressed his belief that gold would significantly underperform cryptocurrencies in the current market cycle and had emphasized his expectation for a rise in cryptocurrencies like Bitcoin. Coutts’ analysis of gold particularly caught the attention of cryptocurrency market participants who predict the continuous growth and adoption of cryptocurrencies as alternative investment vehicles.
