Why Bitcoin’s Big Breakout Is Just Around The Corner, According To These Experts

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Bitcoin’s price stability below $70,000 over the past months has sparked various speculations and analyses among traders and investors.

While the crypto community grapples with the cryptocurrency’s lackluster performance, notable crypto figures like Samson Mow and Adam Back have presented their perspectives, offering a hopeful outlook for the future of Bitcoin’s valuation.

Analyzing The Factors Behind BTC Price Behavior

Samson Mow, a staunch Bitcoin advocate and CEO of Jan3, has publicly forecasted a dramatic upsurge in Bitcoin’s price despite its recent period of price stagnation.

In sync with Mow’s optimism, Adam Back, a prominent figure in the cryptocurrency sphere with historical ties to Bitcoin’s enigmatic creator, Satoshi Nakamoto, has suggested that the current suppression in Bitcoin prices may be attributed to urgent selling by certain market participants needing liquidity.

According to Adam Back, these sellers are depleting their Bitcoin reserves, hinting at a potential market rebound once these assets are fully liquidated.

This perspective is supported by data indicating active basis trading where Bitcoin is collateral rather than BTC ETFs. Additionally, the ongoing purchase activities through CME futures suggest an underlying demand waiting to influence market prices.

Echoing Back’s analysis, Mow highlighted the increase in short interest among newer traders, which he considers unsustainable. He anticipates that these short positions will likely lead to significant liquidations, which could catalyze a sharp price increase.

This matches with my analysis too. With so many left bell curve traders popping up to confidently explain “the short interest increase is just a cash and carry trade,” it’s no wonder why we constantly see so many liquidations. Like the carry trade didn’t exist before this week.… https://t.co/lDIxALdLPI

— Samson Mow (@Excellion) June 9, 2024

Mow metaphorically described Bitcoin’s current price level as a “compressed coil,” poised to explode upward, reflecting a strong rebound that could disrupt the market’s temporary stasis.

Global Economic Indicators and Rate Cuts: Their Impact on Bitcoin’s Market Stability

In the broader context, the crypto market is witnessing cautious movements, as seen with BTC’s slight uptick of 0.9% over the past week, maintaining its consolidation below the $70,000 mark.

Bitcoin (BTC) price chart on TradingView
BTC price is moving sideways on the 4-hour chart. Source: BTC/USDT on TradingView.com

This cautious trend is mirrored in global economic reactions. Recent US non-farm payroll data inducing a “risk-off” sentiment among investors has led to a shift away from riskier assets amidst prevailing economic uncertainties.

As central banks worldwide, including the European Central Bank and the Bank of Canada, implement rate cuts, the investment landscape is adjusting to these changes, with implications for cryptocurrency markets, particularly BTC.

Singapore-based crypto trading firm QCP Capital notes this as a “buy the dip” moment, recognizing potential bullish signals amidst the market’s fluctuations.

Featured image created with DALL-E, Chart from TradingView

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Samuel Edyme

Samuel Edyme

Edyme is a writer, a content writer that specialises in writing about the crypto realm. Asides Bitcoinist and NewsBTC, Edyme’s writing has been featured in top sites such as Blockchain.News, CoinMonk, Blockchain Reporter, Bitcoin Insider among others.

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