While Bitcoin has been experiencing sharp declines for a long time in the face of selling pressure from Mt.Gox and the German government, the selling pressure period seems to be over.
Because the price of Bitcoin rose above $62,000 and analysts predicted that the German BTC sell-off would end and Mt. Gox payments are almost priced in and the worst selling period for BTC may be behind us.
At this point, Ben Simpson, founder of crypto research platform Collective Shift, said that he believes that a local bottom has formed in Bitcoin and the BTC price has entered an upward trend.
Simpson stated that there are several important catalysts that will cause the price of Bitcoin to rise in the coming weeks and months, including potential interest rate cuts by the US Federal Reserve and strong inflows into spot Bitcoin ETFs.
The Worst is Over for Bitcoin!
Apart from Simpson, eToro market analyst Josh Gilbert stated that the increased likelihood of Donald Trump winning the upcoming US presidential elections contributed positively to Bitcoin and cryptocurrency prices, and said that the worst is behind for Bitcoin.
“We have seen weakness in Bitcoin and crypto over the last few months, but I think the worst may be over.
Even if there is any short-term weakness, it is likely that the dip will be bought and the decline will be very short, with positive support such as the launch of the Ethereum ETF and of course the increased likelihood of a more pro-crypto US presidential candidate Trump potentially being elected.
This week's attack on Donald Trump has had a positive impact on his re-election chances. Former President Trump's pro-cryptocurrency stance has boosted Bitcoin and crypto holdings in the process.”
Short-Term Pressure in Bitcoin May Continue in the Summer Months!
Finally, Mark Hiriart, senior manager of crypto asset manager Zerocap, stated that although Bitcoin exceeded $ 62,000, it should turn the $ 60,000 resistance into support, so the price should remain stable above the $ 60,000 level for a while.
Additionally, Hiriart argued that in order for BTC to rise to $65,000 and above, it must first regain its 50-day and 100-day simple moving averages.
Hiriart most recently worked at Mt. He also warned investors that possible Bitcoin refunds on Gox may have some negative effects on the price.
“It would be naive to think that while Mt. Gox creditors have a decade of profits, they will not sell and there will be no profit taking.
The question is what the ranges of distributions will be and what percentage of buyers have the potential to sell.
“I think the short-term pressure on the market may continue in the summer months.”
*This is not investment advice.
