Global equity research firm Fundstrat has predicted that the world’s leading cryptocurrency Bitcoin could revisit the $50,000 price mark again if it continues forming the bullish inverse head and shoulders bottom pattern.
Bitcoin Could See $50,000 Again: Fundstrat
Bitcoin could revisit the $50,000 price level again despite recording its third-biggest monthly drop in its entire history, according to research firm Fundstrat.
The cryptocurrency is currently in the middle of forming the inverse head and shoulders bottom pattern, a sign for bullish signal in previous instances.
— Zack Guzman (@zGuz) May 31, 2021
Responding to this, head of research at Fundstrat Global Advisors, Tom Lee said this is actually a “good sign” for the flagship cryptocurrency.
Appearing in an interview with CNBC’s TechCheck last week, Tom Lee said that Bitcoin could potentially reach a price of approximately $100,000 by the end of the year:
“Again, even though bitcoin is in the penalty box now, I still think it could exit the year over $100,000.”
“I think bitcoin is hyper-volatile. That’s the nature of it, but that’s what creates the reward for people…Bitcoin volatility is sort of systematic to the network itself, so I think anybody who buys bitcoin has to be aware it’s always going to be hyper-volatile. That’s the opportunity.” he added.
Old Bitcoins Spent at Slower Rate
Data from on-chain analytics suggest a slowdown in the rate of older BTC being spent, indicating a large number of holders are willing to stop or pause as markets consolidate for a while.
“A period of consolidation is to be expected as the market comes to terms with the dramatic sell-off last week.” read Glassnode’s latest report.
The #Bitcoin market consolidates after selling-off last week, as investors demonstrate unique spending behaviours on-chain.
– Market pain points
– Spending patterns on-chain
– Analysis of sellers and hodlers
Read more in The Week On-chainhttps://t.co/BJhhRNzKKx
— glassnode (@glassnode) May 31, 2021
This suggests that older Bitcoins are no longer being spent, sold, at previous rates.
The report added that long-term holders represent almost all profitable coins accumulated prior to 2021. In fact, those who bought BTC this year represent almost all coins that are at an unrealized loss and may continue to be a source of selling pressure.