Growing demand from institutions, companies and, more recently, private investors has spurred Bitcoin’s growth this year. Some investors see BTC as an inflation hedge amid massive monetary stimulus.
In addition, analysts are constantly making bullish predictions for the king of cryptocurrencies, some of which are even seeing Bitcoin hit $ 100,000 by the end of the year. However, market experts are also warning that a correction could occur after the dizzying rally. While all of this is mostly from a long-term perspective, what about the short-term?
Veteran dealer Tone Vays has answer the above question in a recent livestream. First, BTC had a great few days after the Bitcoin Exchange Traded Funds (ETF) news. In fact, he predicts that BTC will hit a high of around $ 62,000 on October 19th.
“Bitcoin is on the right track with what I predict for the daily outlook, reaching around $ 62,000 by the end or beginning of next week. Probably October 19th. So BTC has around 3 or 4 days to level up. Especially when we go higher and higher. “
The source: Ton Vays
Additionally, the analyst even discussed profit-taking ahead of a possible retreat if BTC hits the levels described above.
“This is probably the right time to take profits before the price falls because it has risen too far and too quickly. Three weeks ago the price was half what it is now … BTC is rising pretty quickly and there will be a decline … But now the weekly chart is completely bullish and there is still time, “the analyst said on the livestream.
Meanwhile, HODLer BTC has taken some profit taking after the price showed a positive signal.
https://twitter.com/glassnodealerts/status/1449725877324075010?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener
“The number of profitable addresses (7-day MA) just reached a 5-month high of 36,746,034,190.”
It must be said that volatility has been and still is an integral part of the evolution of BTC since its inception. Vays said an increase this fast was more likely to decrease. He predicts the price will return to around $ 53,000 or $ 54,000, but his year-end forecast remains unchanged.
“Bitcoin looks great. I’m still thinking of a double high with April in the middle of the $ 60,000 zone. The price could fall into the mid-range of $ 50,000 and then still hit around $ 100,000 by the end of the year. I am still optimistic. “
Many other BTC bulls have also predicted similar prices. For example trader Scott Melker suspect $ 62k level.
With Bitcoin trading over $ 60,000 in the past 2 days, the market has fallen into a state of euphoria. However, it is time for investors to calm down and prepare for some adverse situations.
Yesterday, Bitcoin topped the market for the first time in 5 months. A market high occurs when a profitable supply makes up more than 95% of the total supply in circulation. Usually the price will fall after such market highs.
Profitable Bitcoin Supply | The source: Glass knot
This means that the possibility of a correction from here will definitely be very high and although it has not really formed clearly, a lot of red candles have appeared.
Bitcoin ATH and current price | The source: TradingView
However, some traders remain intrepid. As mentioned yesterday, medium-term holders (holding MTH – hold Bitcoin for 6-12 months) continued to stay HODL while larger pools boosted sales.
They haven’t sold BTC since July, even during the fall in August and the rally in September, so their asset was last active at a 2-year high.
Delivery of MTH Bitcoin | Source: Glassnode
Not really. Regardless of the position of the medium-term owners, new investors will be in no hurry to toss money on Bitcoin. The current risk is very high and given the possibility of a price decline, an investment does not seem attractive at the moment.
However, it is also possible that this prediction is wrong as the variance from stock to flow, despite being a 5 month high, is still below 1. Hence, BTC is still undervalued.
S2F Bitcoin Deviation | Source: Glassnode
In addition, the extreme greed sentiment according to the greed and fear index could help the market to rise further.
Bitcoin is in a state of extreme greed | Source: alternative
Simply put, it is advisable to wait for the next 48 hours and watch the market. If the negative signals intensify, adjust your portfolio accordingly.
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