Bitcoin continues to fascinate. While some predict its demise, others like analyst Pentoshi announce a thriving future for the flagship crypto. In a recent tweet, this seasoned trader asserts that the king of crypto-assets should soon experience a saving bearish capitulation. Explanations.
The specter of the Bitcoin ETF looms over investors
According to Pentoshi, Bitcoin is preparing to experience a decisive event within 40 days: the potential approval of the first spot Bitcoin ETF (Exchange Traded Fund) by the American Securities and Exchange Commission.
In an encouraging sign, a Bloomberg analyst estimates that the SEC should give the green light to all applications for physical Bitcoin ETFs as early as January 2023.
However, the upcoming arrival of these famous Bitcoin ETFs on the American market could trigger new bullish rallies.
Indeed, these exchange-traded index funds would allow a new category of investors to buy bitcoin without going through crypto exchange platforms. Massive adoption of the first crypto by American institutions is therefore on the horizon!
A beneficial bearish capitulation
In this context, Pentoshi therefore anticipates what he calls a “bearish capitulation” among the most pessimistic traders regarding BTC.
In other words, even the most convinced bears should recognize the strength of Bitcoin and capitulate by buying satoshis. A capitulation which would be doubly beneficial according to the analyst.
On the one hand, it would allow the price of bitcoin to rebound quickly. On the other hand, it would put an end to apocalyptic forecasts announcing the imminent extinction of crypto-assets. Because yes, in recent months, detractors have enjoyed observing the plummeting prices. Alas, their happiness should not last!
On the side of bullish analysts, enthusiasm is also in order. On Twitter, the popular Kaleo – 350,000 subscribers – shares a promising graph. We see that the price of Bitcoin should reach $45,000 in the near future.
A realistic projection according to Pentoshi. The latter nevertheless reminds us that the $40,000 – $42,000 zone could constitute psychological resistance. Indeed, for the past year, BTC has been moving mainly within this range, without succeeding in confirming an overall upward trend.
Regardless, the famous analyst remains convinced of the bright prospects of Bitcoin in the long term. According to him, this period of uncertainty even offers a golden opportunity to accumulate satoshis at a lower cost. In other words, the time would be perfect to adopt the “dollar cost averaging” strategy dear to the most seasoned investors.
In conclusion, despite a difficult macroeconomic context, the future seems bright for Bitcoin. The much-heralded capitulation of bearish traders could have the appearance of redemption for decentralized crypto. All that remains is to wait for the SEC’s verdict on the first spot BTC ETFs. Suspense…
