Crypto analyst Altcoin Sherpa has raised concerns about the possibility of Bitcoin dropping to new lows, suggesting that the bottom is not yet in sight. In a recent social media post, Altcoin Sherpa pointed out that Bitcoin could find its bottom around the $40,000 range, implying that there might be further downward movement. This prediction comes with a warning of potential liquidations and increased market pain as Bitcoin struggles to stay above the psychological level of $50,000. Altcoin Sherpa also anticipates a period of price range-bound movement for Bitcoin in the coming months, with intermittent altcoin rallies causing excitement among traders.
Mikybull Crypto’s Bullish Analysis
On the other hand, analyst Mikybull Crypto has a more optimistic outlook regarding the Bitcoin price action, suggesting that the bottom is already in and Bitcoin is unlikely to drop below $50,000 again. Using the Elliot Wave Theory to analyze the market, Mikybull Crypto points out that the wave four correction phase is nearing its end, setting the stage for a wave five that could push Bitcoin up to $135,000 in the near future. Additionally, he highlights indicators such as the volatility index (VIX) and the Relative Strength Index (RSI) to support his thesis that the macro bottom is in place. Factors like the Bank of Japan’s monetary policy stance and the negative funding rate of Bitcoin further strengthen his bullish case, along with the increasing trading volume of Spot Bitcoin ETFs and continuous accumulation by institutional investors.
Institutional Accumulation: A Positive Sign?
According to Cryptoquant’s CEO Ki Young Ju, a significant amount of Bitcoin has been transferred to permanent holder addresses in the past month, indicating a trend of accumulation by institutional investors. This accumulation trend is further substantiated by the ongoing interest from whales in acquiring Bitcoin, as well as the negative funding rate which could potentially trigger a short squeeze in the market. The combination of these factors suggests that institutional players are actively bidding for Bitcoin rather than selling, signaling a positive sentiment towards the cryptocurrency.
The conflicting views of analysts Altcoin Sherpa and Mikybull Crypto highlight the uncertainty surrounding Bitcoin’s price trajectory. While Altcoin Sherpa warns of potential downside risk and further price declines, Mikybull Crypto remains confident in a bullish outcome with a target price of $135,000 for Bitcoin. The ongoing accumulation by institutional investors and positive market indicators add another layer of complexity to the debate, leaving traders and investors to interpret the signals and make informed decisions in a volatile market environment.
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