Author: William Suberg, CoinTelegraph; Translated by: Tao Zhu, Jinse Finance
Bitcoin’s drop to multi-day lows has nothing to do with the broader Bitcoin price uptrend, new analysis claims.
In its latest market comments sent to Telegram channel subscribers on May 28, QCP Capital dismissed recent “supply anxiety.”
QCP Capital: BTC price drop is a "small episode" in the upward trend
QCP Capital believes that Bitcoin bulls have little to worry about BTC's rally.
Movement of bitcoin from wallets belonging to defunct exchange Mt. Gox caused the price of bitcoin to drop 2% overnight, but that wasn’t enough to make us rethink market moves.
“The movement of Bitcoin in Mt. Gox’s cold wallets sparked a sell-off below $68,000 this morning,” the analysts wrote.
“However, these supply anxieties are likely to be just a blip in a broader year-end uptrend.”
QCP highlighted what it called “three bullish reasons” to maintain confidence in the future robustness of Bitcoin.
These focus on the strong performance of the U.S. stock market spilling over into cryptocurrencies, political endorsements of U.S. presidential candidates and the upcoming launch of a spot Ethereum exchange-traded fund.
It argues: “Cryptocurrencies have gained unprecedented political support in the United States (the passage of the bill that established clear regulatory provisions for digital currencies, the SEC’s positive shift toward an Ethereum spot ETF, Trump’s support for cryptocurrencies).”
All three reasons for optimism are in their early stages, with U.S. regulators unexpectedly approving an Ethereum ETF earlier this month, but the ETF has yet to officially begin trading.
Bitcoin "flying the bullish flag"
QCP isn’t the only company that sees a bright future for BTC prices in the second half of 2024.
Financial research firm Fundstrat Global Advisors is one of the most bullish corporate entities on Bitcoin this year, predicting that the price of each Bitcoin will reach $150,000 by the end of the year.
Meanwhile, individual traders believe the rally will pick up speed in June, with one trader saying it should see a new all-time high of $95,000.
“Bitcoin is holding a bullish flag despite the large amount of Bitcoin being moved from Mt. Gox,” Jelle, another popular trader, continued regarding the day’s short-term trend.
“ The market is range-bound, but if BTC breaks above $70K again, it will quickly turn outright bullish. ”
Bitcoin/USD chart. Source: Jelle/X
The accompanying chart shows that a potential impulsive move could occur at the end of a consolidation period.
