Crypto analyst Altcoin Sherpa has raised concerns that the Bitcoin bottom may not have been reached yet, suggesting that the flagship cryptocurrency could still plummet to new lows. In a recent post on X (formerly Twitter), Altcoin Sherpa pointed out that Bitcoin is more likely to bottom out around the $40,000 range rather than $50,000. This prediction comes with a warning of potential “nasty wicks, liquidations, and pain” as Bitcoin navigates through choppy waters. According to Altcoin Sherpa, Bitcoin could still dip below the psychological $50,000 mark before stabilizing.
Mikybull Crypto’s Contrary View
On the flip side, analyst Mikybull Crypto has presented a different take on the Bitcoin bottom debate. Utilizing the Elliot Wave Theory to analyze Bitcoin’s price movements, Mikybull Crypto believes that the fourth wave correction is coming to an end, signaling a trend reversal. He anticipates that Bitcoin’s price will surge to a minimum target of $135,000 in the coming months. Additionally, Mikybull Crypto highlighted indicators such as the volatility index (VIX), Relative Strength Index (RSI), and the Bank of Japan’s monetary policies to support his argument that the Bitcoin bottom is in. He also pointed out that the negative funding rate and increasing trading volume of Spot Bitcoin ETFs suggest a bullish sentiment among institutional investors.
The Institutional Perspective
Cryptoquant’s CEO, Ki Young Ju, provided further insight into the ongoing accumulation of Bitcoin by institutional investors. According to Ju, over 400,000 BTC have been transferred to permanent holder addresses in the last 30 days, indicating a strong interest from institutional players. This accumulation trend, coupled with the negative funding rate and increased trading volume, could potentially lead to a short squeeze in the market. The involvement of institutional investors in bidding for Bitcoin rather than distributing it suggests a positive outlook for the cryptocurrency.
The Bitcoin bottom debate remains ongoing with conflicting opinions from analysts like Altcoin Sherpa and Mikybull Crypto. While Altcoin Sherpa warns of potential downside risks and further price corrections, Mikybull Crypto remains optimistic about Bitcoin’s price trajectory based on technical analysis and market indicators. Ultimately, the actions of institutional investors, as highlighted by Cryptoquant’s CEO, may hold the key to determining whether the Bitcoin bottom has truly been reached. As the market continues to evolve, only time will tell which perspective proves to be accurate.