In the ever-evolving world of cryptocurrency, a seasoned market expert has provided clarity on Bitcoin’s current market behavior. Despite recent bearish trends, the expert emphasizes that the minor price correction, leading to significant liquidation of BTC positions, is both “healthy and reasonable.” This perspective aims to address growing concerns about Bitcoin’s future potential and stability.
Bitcoin’s Bearish Move: A Reason for Concern?
Bitcoin recently experienced a brief upward rally, which was quickly followed by a downward trend. This shift has sparked discussions among investors about its short-term performance, especially with the looming United States Presidential election. However, the narrative is not necessarily negative.
Crypto analyst and trader, Doctor Profit, posits that this slight pullback could be a positive indicator for Bitcoin. This cooling-off period might serve as a consolidation phase, allowing for stronger market sentiment among both short and long-term holders. According to Doctor Profit, Bitcoin recently surpassed its previous high of $65,000, marking a new milestone since its all-time high in March. This development challenges the prevalent theory of higher highs and lower lows proposed by pessimistic analysts, who predicted a continued decline.
The analyst notes that Bitcoin’s current decrease of 8.8% from its peak on Tuesday is reasonable, considering the substantial gains witnessed over the previous two weeks. Such a correction is deemed healthy and indicative of a robust market.
Impact of the Upcoming US Presidential Election
The recent pullback in Bitcoin’s value is partially attributed to shifts in market sentiment regarding the potential victory of Vice President Kamala Harris in the upcoming US presidential election on November 4. Doctor Profit explains that the market is adjusting to the possible implications of a Harris win, leading to a temporary dip in value.
While a Harris victory might not be overly bullish for the crypto market, Doctor Profit asserts that a win by former US president Donald Trump could have a significantly positive impact on the crypto landscape. Nonetheless, the expert emphasizes that irrespective of the election outcome, the Federal Reserve’s commitment to continuous monetary expansion remains unchanged, suggesting a positive long-term outlook for Bitcoin.
OTC Desks and Bitcoin Shortage
Doctor Profit has highlighted a noteworthy trend in Bitcoin’s availability on over-the-counter (OTC) desks. There is a significant decrease in Bitcoin supply on these platforms, which signals a rising shortage amidst increasing demand from institutional and large-scale investors.
According to CryptoQuant, there is a notable discrepancy in their OTC desk balance, with reported holdings of 400,000 BTC. However, multiple X (formerly Twitter) accounts suggest that OTC desks have been actively seeking to purchase Bitcoin, hinting at potential discrepancies in reported figures.
The current availability of Bitcoin on OTC desks is estimated to be between 110,000 and 130,000, indicating that over 300,000 BTC have been sold since March. This trend forces consumers to purchase directly from crypto exchanges, potentially leading to further price spikes.
The Bigger Picture
In conclusion, while short-term fluctuations and external factors like political events may influence Bitcoin’s market behavior, the overall trajectory remains promising. Investors are encouraged to remain steadfast in their positions, as the broader outlook suggests a continued upward trend in Bitcoin’s value.
