Anonymous cryptocurrency analyst and trader Pentoshi stated that Bitcoin‘s (BTC) upcoming block reward halving event and the potential approval of a spot Bitcoin exchange-traded fund (ETF) in the US are highly anticipated developments after enduring a particularly negative market environment.
Short-Term Risk Continues
Crypto analyst Pentoshi warned investors that while a positive long-term outlook is possible, challenging times may persist in the short term. In his analysis of Bitcoin, the analyst stated:
FTX has survived hack attacks, stablecoins losing their peg, and everything going to zero. Nothing was safe, and this will happen again when the market needs leverage, but price-based capitulation is complete, and time-based capitulation is nearly done. There are beautiful things both very near and very far. There’s a lot to look forward to. The block reward halving and the potential access to spot Bitcoin ETFs in the US are two major rally catalysts to anticipate. Don’t miss out on the beautiful things in the bigger picture by focusing on lower timeframes. In the short term, we still have a bit of a tough period ahead, but there’s a lot of light at the end of the tunnel.
The majority of market analysts and experts are in agreement that Bitcoin will experience a significant surge, surpassing $100,000 in price in 2024-2025 following the anticipated block reward halving in April 2024.
Bitcoin’s Price-Based and Time-Based Capitulation Periods
Price-based capitulation, characterized by panic selling and high trading volume, is a period of sharp price declines where many investors rush to sell their assets regardless of the long-term outlook.
On the other hand, time-based capitulation, typically considered a sign of a bottom formation, refers to a period when an asset’s price consolidates within a specific range for an extended period without indicating any major trend. Pentoshi’s prediction that Bitcoin has emerged from the price-based capitulation period and is approaching the end of the time-based capitulation period is supported by the significant decrease in price volatility and trading volume of the largest cryptocurrency.