Bitcoin is not likely to enter a downtrend anytime soon, with a strong foundation that supports the current trajectory, says a researcher in the crypto product provider 21shares.
“The imbalance structural between increasing demand and a rapidly missing supply base produces a prolonged correction that is especially unlikely,” 21shares crypto research strategist Matt Mena in cointelegraph.
“There are more positive than the negatives today,” Mena added.
Exchange, OTC Bitcoin supply at all times lows
Mena says that bitcoin (Btc) The supply held at crypto and over-the-counter (OTC) exchanges will continue to remain at a low time as demand for cryptocurrency continues to increase.
“On the supply side, the grounds remain more skewed,” he said.
Bitcoin reached a new all-time high of $ 122,884 on Monday, and Bitfinex said that New buyers entering the Bitcoin market is seen as priced-abuse and scooping of cryptocurrency than miners can provide it.
Bitwise Head of Research taught by André Dragosch Friday that lack of interest in Google search For the word “bitcoin” may indicate a lack of interest in retail investors.
“Bitcoin is in the new all-time highs, but the retail can hardly be found,” Dragosch said.
Bitcoin’s new high $ 122,884 came just a few days after it broke the full time of $ 111,970 on July 9, before entering an uprising that reached the weekend.
Bitcoin traded at $ 117,804 at the time of publication, According to In CoinMarketCap data.
Mena said that in the first half of this year, “the Listed Bitcoin ETFs listed in the US have been absorbed by many BTC multiples of mine this year.”
“Nor is it with corporate treasury consumers, who continue to add quiet to the background,” he added.
Macro’s risks can be dangerous to be bitcoin
However, Mena warned that an upside down could not be fully decided.
“It is certainly possible that the combined -with Bitcoin, or even seeing a pullback,” he said, which has dropped two Macro risks that can weigh in the crypto market:
“If Trump’s suggested tariffs end in becoming more serious than markets currently expected, or if Powell’s signs that rates are more than expected, we will see the risk of risk that is widely written, including Bitcoin.”
The 21shares forecasts that an extended price drawdown over the next six months is not likely “unlikely,” Mena said.
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“When the tag ends and the liquidity returns, we look forward to the reversed momentum,” he added.
“What is really noteworthy is that bitcoin sets new hours high during the most offensive, periodic weak part of the year,” Mena said.
Historically, the third quarter of the year is the weakest performance of Bitcoin, which has only averaged 6.32% return since 2013, According to in coinglass data.
“History, the tag -day is when markets are swinging -merchants are on holiday, drowning volume, and price action flattens,” Mena said. “But this cycle objects to that standard.”
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