A veteran market expert has shed light on Bitcoin’s current performance, noting that the minor price correction that led to significant liquidation of BTC positions “healthy and sensible,” facing concerns about its future.
Bitcoin’s Bearish Move Isn’t Something to Worry About?
Bitcoin’s recent bullish rally seen early last week was short-lived as the major cryptocurrency asset has started to decline, raising speculation about its short-term performance among investors as United States Presidential Election it’s just around the corner.
However, crypto analyst and trader, Doctor Profit, claims a slight pullback is a positive move, suggesting a bullish market signal for BTC. Before the next step up, this cooling off period may allow for consolidation, strengthening the sentiments of both short-term and long-term holders.
According to Doctor Profit, last month, Bitcoin surpassed the previous high level $65,000thus printing a new high for the first time since its peak in March. This casts doubt on the much-discussed theory of highs and lows, cited by many pessimistic analysts as evidence that BTC will continue to decline.
He emphasized that Bitcoin is currently down 8.8% from its high on Tuesday. Given the huge gains seen in the past two weeks, this decline makes sense and is a healthy correction.
The brief reversal was due to a change in market sentiment regarding the possibility of the Vice President Kamala Harris he will win the upcoming US presidential election, which is scheduled to be held on November 4. “The market is simply pricing in the possible consequences of the Harris situation, hence the dumping,” he added. Although Dr. Profit believes that Harris’ victory will not be super bullish on crypto, he is convinced that the former president of the US Donald Trump winning the election will be super bullish for crypto.
Regardless of whether Trump or Harris wins the election, the expert noted that it will not prevent the Federal Reserve’s (Fed) commitment to continued printing. Because of this, he urged investors to stay strong because nothing has changed in the long term as the situation is increasing from a broader perspective.
OTC Desks Are Running Out of BTC
Dr. Profit also pointed out that over-the-counter (OTC) Bitcoin supply has fallen significantly, indicating a growing shortage of BTC during the boom. demand from institutional and large investors.
According to experts, CryptoQuant says that their OTC desktop balance is very distorted, with 400,000 BTC in OTC, while many X accounts (formerly Twitter) reported that OTC desks have reached out to buy BTC, suggesting that CryptoQuant may be manipulating the numbers to one’s advantage.
However, the BTC available on OTC desks is between 110,000 and 130,000, which means more than 300,000 BTC were sold in the previous months since March. In general, this indicates that consumers are forced to buy directly from crypto exchanges, leading to significant and sudden price increases.
Featured image from Unsplash, chart from Tradingview.com