After dropping below $ 30.000 on Tuesday, July 20, Bitcoin (quotation BTC) is once again rising once again, securing its important support. As of press time, BTC's price has risen by around 4% and it now has a market cap of $ 575 billion.
Weak hands are falling out
The world's largest cryptocurrency has shown highly volatile performance in the past few weeks, so it will be prudent not to make any new entries at this point. Some traders are still expecting dips for Bitcoin, as it has consistently broken through key support levels to the downside. Speaking on CNBC's Trading Nation show, Delano Saporu, founder of New Street Advisors, said:
“I think you probably have more disadvantages, perhaps around the $ 22.000 range [a] the $ 17.000 per bitcoin range that dates back to December 20 last year. However, "from there, I think there will be an upside," he said.
Being on a positive side, Saporu probably means that for the short term he is optimistic and that is exactly what we are seeing today. Although bearish for the very short term, Soparu predicts a bright future for Bitcoin investors in the long term.
“A lot of people who were speculating when the price was really at its highs and jumping at that moment, were really looking for a quick profit, they were wrong at that moment,” he added.
The Bitcoin sell-off could be temporary
In the same interview with CNBC's commercial nation, Fairlead Strategies founder Katie Stockton shared a slightly different opinion. Stockton believes yesterday's drop below $ 30.000 will mark the end of the consolidation phase. He adds that Bitcoin is now "ripe for a shakeout".
A shakeout is the symbol of a false breakout below crucial support levels. However, the price quickly reverts once the market "shakes those weak bitcoin holders".
According to Stockton, if Bitcoin rebounds this week, it would mean the sell-off was temporary. It also indicated a secondary support level of $ 27.000 above which the long-term trend remains intact. On the bull side, a strong breakout above the 50-day moving average of $ 34.500 would mean the consolidation phase has bottomed out.
As Bitcoin continues its downtrend, institutional players have bought with each decline. On Monday, Cathie Wood's Ark Invest bought 300K shares of the Grayscale Bitcoin Trust (GBTC). In the last quarter, Rothschild added 100K shares of GBTC to its portfolio.
And have you bought in decline with long-term prospects? Or are you waiting for further discounts to enter the market? Let us know in the comments below.
