Renowned trader Pentoshi, who accurately predicted the end of the Bitcoin (BTC) 2021 bull market, has recently suggested when the flagship could experience a significant surge in terms of price.
The trader points out that capital appears to be exiting the crypto markets at present, but expects market conditions to shift in the coming months, particularly around Bitcoin’s next halving event, which is estimated to play out in April 2024.
According to Pentoshi, when most altcoins trend downwards, and both stablecoin market cap and TVL decrease, it signals a potential absence of new capital.
Read Also: Crypto Community with 85% Historical Accuracy Forecasts Bitcoin (BTC) Price for August 2023
However, Pentoshi believes that fresh money will enter the market, anticipating Bitcoin’s price to soar around the first quarter of 2024. The trader also credits figures like Michael Saylor, Tether, and the potential approval of a Bitcoin exchange-traded fund (ETF) as the support preventing Bitcoin from dropping below $20,000.
Despite the speculation of an impending rally, Pentoshi currently holds a bearish outlook on BTC due to two macro headwinds. Firstly, the recent rally in oil markets suggests a potential resurgence of inflation. Secondly, the trader expects regulatory bodies to delay the approval of a spot-based Bitcoin ETF.
Pentoshi anticipates that this correction resulting from regulatory factors and inflationary concerns could pave the way for a substantial rally once an ETF receives the green light from regulators.
The trader suggests that the delay in approving the ETF, coupled with a high consumer price index (CPI) reading, could lead to a temporary dip in the Bitcoin price. Pentoshi emphasizes the need to pay attention to these indicators and mentions the recent increase in oil prices, which has a ripple effect on various markets and often drives prices upward.
Bitcoin halving events, which occur approximately every four years, have historically had a significant impact on the cryptocurrency’s price. With the next halving set for April 2024, the crypto community eagerly awaits the potential effects on Bitcoin’s value.
While predictions and market sentiment surrounding the halving are subject to change, traders and investors continue to monitor the market dynamics, looking for indications of a potential rally.
Read Also: Dormant Bitcoin Whale Moved BTC worth $31 Million after 11.3 Years. Here’s the Destination
The approval of a Bitcoin exchange-traded fund (ETF) by regulatory bodies remains a key focus for market participants. A Bitcoin ETF would provide investors a regulated and convenient way to gain exposure to the cryptocurrency market.
However, concerns and uncertainties surrounding market manipulation, investor protection, and custody solutions have delayed the approval process. Traders and analysts closely track regulatory developments and influential figures within the crypto ecosystem, as a positive regulatory stance could act as a catalyst for renewed market momentum and increased investor participation.
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London, United Kingdom, 21st November 2024, Chainwire