eToro Analyst Proclaims Crypto Winter Over But Isn’t Bullish On Bitcoin (BTC) Yet
Crypto Winter is Finally Over
For the past 15 months, a winter has ravaged the crypto and Bitcoin industry at large. Tokens lost a vast majority of their all-time high value as industry startups, like Coinbase, Ledger, ShapeShift, Bitmain, and so on and so forth, enlisted layoffs or had to shutter their operations entirely. But one analyst claims that BTC is out of a bearish state.
In a recent CoinTelegraph Youtube segment, Mati Greenspan, eToro’s in-house crypto analyst and industry commentator, noted that BTC has surpassed a long-term bear trendline, meaning that the bear market is “over completely.” Indeed, as a number of analysts, like Alex Kruger, noted that when Bitcoin moved above the $4,200 level, bears’ reign ended.
This recent comment comes just a week or two after Tom Lee made a similar remark. As reported by Ethereum World News, the head of research of Fundstrat took to Bloomberg to claim that Bitcoin’s spike earlier in April was based on “true buying,” making it not an act of manipulation as some postulated. This is likely in reference to a Reuters report, which claimed that a single group or entity managed to purchase $100 million worth of Bitcoin across three exchanges, creating a short-term influx of FOMO that pushed BTC higher.
Furthering the bullish narrative, Lee looks to the 200-day moving average, which has acted as an overarching level of resistance for BTC since early-2018. The Fundstrat co-founder explains that while many proclaimed cryptocurrencies dead as a result of their -85% performance from top to bottom, BTC closing and holding above the aforementioned level for weeks on end confirms that it is “back in a bull trend.”
Bitcoin Isn’t Rallying Just Yet Though
This all isn’t to say that BTC is ready to move dramatically higher, however. As Greenspan notes, there is still potential for BTC to undergo the second half of the “Bart Simpson pattern,” which would mean a dramatic sell-off to pre-rally levels (low-$4,000s) sometime in the coming weeks. He adds that the Tether and Bitfinex news is still looming over the cryptocurrency market, as the court case regarding the two companies is still ongoing, and could potentially result in a so-called “black swan” event, whereas the market could plummet.
Patrick Heusser from Crypto Broker AG echoed the idea that BTC breaking beyond $6,000 is unlikely in the short-term. He tells CoinTelegraph that due to the systemic importance of both Bitfinex and Tether, but especially the stablecoin, any serious negative developments in that arena, like a shutdown of either the two entities, could have short-term ramifications. From a technical perspective, he notes that the cryptocurrency market is somewhat overextended, adding that a pullback to $4,800 would be healthy and would likely provide BTC with a solid base for a further move to the upside.
Title Image Courtesy of Andre Francois Mckenzie Via Unsplash