Bulls Report Says Bitcoin Price “Very Close To The Bottom” With A Decline Of $ 30,000

Cryptocurrency company Stack Funds believes Bitcoin (BTC) is “very close to a rock bottom” and still has an optimistic long-term perspective.

In the latest report released on June 23, analyst Lennard Neo said that despite the price drop, there was no reason for a bearish reversal for BTC.

Stacks: BTC macro view “still the same”

The report comes a day after BTC / USD fell below $ 30,000 for the first time in six months, only to rebound to current levels above $ 34,000.

The volatility that has arisen thanks to the restructuring of the mining industry will now appear to see a transmission of hash power en masse from China to other countries.

“Bitcoin also closed lower, losing 28% after failing to crack $ 42,000 last weekend. The digital asset has since regained some ground after a brief decline yesterday and is currently trading at $ 34,000, ”concludes Stack.

“Our macro view remains the same as we expect Bitcoin to create the conditions for further consolidation.”

Neo highlights an important date that is near-term – the second quarter option expires in the last week of June and is valued at $ 2.3 billion, which will allow for post-settlement price consolidation.

Options expiration events can put some pressure on Bitcoin upfront, but as Cointelegraph noted, not every expiration ends the market when it does.

“Adding to uncertainty are the $ 2.3 billion bitcoin options at the end of the quarter that expire this Friday – in part due to the increased volatility in the market,” he added.

“Nonetheless, we believe that most of the expectations have been factored into the market and we expect a relatively quiet session to follow in the next few days.”

Not all bad news?

Traders can welcome any opportunity to buy after the week’s events. In the past 24 hours alone, over $ 1 billion in positions have been liquidated due to rapid price fluctuations.

However, significantly fewer long positions were liquidated in the previous week, which Stack attributed to a “more cautious” sentiment among market participants.

Connected: Bitcoin is headed for the worst quarter since the bear market in early 2018

With big players like MicroStrategy teaming up to land a $ 30,000 bid, there is little left to buttress the skeptics’ view of a doomsday market correction.

“When you add all of these factors together, we believe that Bitcoin is very close to rock bottom, at least for the current wave,” Neo concluded.

“We will be closely monitoring the process of Bitcoin posting options and it will be interesting to see how this develops in the first week of July, early in the third quarter.”

Important fund releases for Grayscale Bitcoin Trust ($ GBT) investors will also take place in July. After this event, some said that the selling pressure on Bitcoin would increase, the desire to sell has more or less withdrawn from the market.

However, not everyone believes that the $ 28,600 floor hit on Tuesday will be Bitcoin’s final drop.