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Bitcoin Pullback Here Would Be “Healthy” and Spark Further Upside



  • Bitcoin and the aggregated crypto market have been consolidating throughout the past few days and weeks, with the recent selloff not striking a blow to the market’s structure
  • Where the entire market trends next will depend largely on whether or not buyers or sellers can take firm control of BTC’s price action
  • One trader is now noting that he does expect BTC to see a cooldown throughout the rest of the year
  • He expects the benchmark cryptocurrency to set new all-time highs in 2021, which could mean that the coming six weeks will consist of choppy price action

Bitcoin and the entire crypto market have been caught in the throes of an intense bout of sideways trading throughout the past few days.

The recent rejection at $18,600 struck a blow to BTC’s momentum and showed that the crypto’s rally had become greatly overheated. This rejection sent BTC spiraling to lows of $17,400, from which point it has since seen a significant rebound.

Where the market trends next will depend largely on BTC and whether or not it can gain a strong foothold above $18,000.

One trader doesn’t believe that it will see any massive near-term momentum, as he is closely watching for a bout of consolidation throughout the end of the year before starting a new leg higher in 2021.

Bitcoin Surges Towards $18,000 as Bulls Try to Spark Momentum

At the time of writing, Bitcoin is trading up just over 1% at its current price of $17,990. This is just shy of the crucial resistance level that analysts have been watching over the past few days and weeks.

This level has become a pivotal point for the crypto, as previous breaks above it have sent it rocketing higher, while rejections here have been grim.

The coming few days should provide insights into just how important this level will be for Bitcoin’s mid-term outlook.

Analyst: BTC Likely to See Bout of Consolidation Until 2021

One analyst explained in a recent tweet that he is expecting Bitcoin to see some “healthy” consolidation in the near-term.

“Even though I am bullish in the macro and longterm, and I think the price will easily break above ATH next year, I think that a pullback would be healthy, just like in any traded market. It’s very important that we realize just how far we have come in such a short period of time,” he said.

Image Courtesy of Cactus. Source: BTCUSD on TradingView.

Unless Bitcoin rallies past $18,000 and closes above this level on a higher time frame close, there’s a strong possibility that it will kick off a bout of consolidation.

Featured image from Unsplash.
Charts from TradingView.

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PlanB feeling ‘uneasy’ as 41% of his followers tip $100K BTC won’t happen this year




PlanB, the brainchild behind the Bitcoin stock-to-flow model, has revealed he is feeling “uneasy” about his renowned price predictions due to the recent downtrend in markets.

The stock-to-flow (S2F) model, which has predicted BTC prices with some degree of accuracy over the past two years, has been called into question by some of his followers in a recent Twitter poll.

The anonymous analyst surveyed his followers on June 21 asking them what price they thought BTC would reach by the end of the year. He used the results to compare them to a similar survey in March when market sentiment was overwhelmingly bullish.

Of the 124,595 respondents to the latest poll, 41% thought that BTC prices would remain below $100K by the end of the year, which would invalidate the S2F model. That’s two and a half times the 16% in the previous poll who thought the lazer eyes crowd would be disappointed this year.

PlanB who originally published the price predictor in March 2019, pinned a message admitting that even he feels a little “uneasy” when BTC prices deviate from the model. However, the analyst noted that the model had managed to hold previously in March 2019, again in March 2020 when the pandemic caused a global market meltdown, and once more in September 2020.

Preston Pysh, the founder of The Investors Podcast Network, commented that it was difficult for a model to account for a blizzard of bad news that has accelerated the market downturn.

“You mean your model doesn’t account for 40%+ of mining rigs getting banned & forced to turn-off & relocate to various parts of the world…and with no forward notice to companies/entitles for the extraordinary expense to their heavily denominated BTC treasuries/retained earnings.”

The model is a calculation of a ratio based on the existing supply of Bitcoin against how much is entering circulation. The scarcer the asset becomes due to the four-year halving cycles the higher the price. PlanB’s model predicts an average price of $288K over the next three years.

Related: $288K BTC price ‘still in play’ says PlanB as Bloomberg champions Bitcoin halving

At the time of writing, Bitcoin had gained 2.9% over the past 24 hours to trade at $34,450 according to CoinGecko. The asset is currently 45% down from its all-time high of $64,800 on April 14.

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Bitcoin in uptrend but BTC may never beat gold’s $10T market cap — ex-NYSE head




Bitcoin (BTC) is on a “lower left to upper right trend” and its volatility should not scare investors, the former head of the New York Stock Exchange says.

In an interview with CNBC on June 23, Thomas Farley revealed long-term convictions about Bitcoin and dismissed concerns over BTC price losses.

Bitcoin: Going up, but not “up only”

Coming a day after CNBC pundit Jim Cramer admitted that he sold his Bitcoin stash, suggesting that BTC/USD was going as low as $10,000, Farley provided some much-needed mainstream bullishness.

“With respect to the recent price moves, I’m kind of sanguine about them — Bitcoin’s a very volatile asset class, in part because it’s a new asset class,” he told the network.

“I have no doubt it’ll go up, it’ll go down over the long term — I still think it’s a lower left to upper right trend and I think we’re going to see that play out over five years.”

With mining upheaval coming from China still on everyone’s lips, popular mainstream criticism of Bitcoin’s energy usage was also swiftly cast aside as a temporary issue.

“I think this kerfuffle is an interesting conversation, but by and large I think it’ll be resolved because I think the blockchain at its core adds to its efficiency and in fact will add to energy efficiency over time,” he continued.

Less convinced on gold. vs. Bitcoin

When it comes to Bitcoin as “digital gold,” however, Farley was more conservative in his predictions.

Now firmly beneath a trillion-dollar market cap, Bitcoin must transform in order to take on store-of-value safe-havens.

Related: Joining the ranks: Bitcoin’s correlation with gold and stocks is growing

“I think the upper bound for now is gold, which is about a $10 trillion market cap,” he added.

“In order for Bitcoin to one day exceed gold, it’ll have to be more of an accepted form of currency — I’m not sure, frankly, if it ever gets there.”

Proponents argue that Bitcoin, by its very nature, faces just a matter of time before eclipsing gold thanks to the latter’s ultimately infinite supply and inability to beat Bitcoin in all aspects of “money.”

The precious metal saw a major sell-off last week after comments on policy from the United States Federal Reserve.

To beat gold, Bitcoin would need to trade at more than $533,000 with the current supply.