The crypto expert who correctly predicted the conclusion of the Bitcoin bull market last year forecasts a new trend for BTC.
Pentoshi, a pseudonymous industry expert, informs his 656,200 Twitter followers that he thinks Bitcoin’s bottom is near.
Nonetheless, he emphasises that a Bitcoin bottom does not always signal the beginning of a new bull cycle.
“While the BTC bottom may be close, the time aspect of it is unlikely to be close. Time is the most valuable asset we have. Probabilities say we likely spend a lot of it sideways.”
Looking at Pentoshi’s chart, it seems that he forecasts the end of Bitcoin’s year-long decline, as he anticipates BTC trading sideways over the next several months.
According to the cryptocurrency expert, his forecast is based on the drivers that sparked Bitcoin’s last bull market are no longer present.
“We have to ask what conditions led to the last bull market? Do those conditions exist now, or will they be in such extremes again? The entire globe is locked down with stimulus, quantitative easing, rates negative or at zero, paycheck protection programme ‘loans,’ and $120 billion a month in accommodation from Fed.
So while it is popular to call bottom weekly and say the bottom is a close weekly, there isn’t much to support that, at least on the time axis. Only the price axis, $69,000 to $16,000, doesn’t take a genius to realise we are closer to a bottom.”
The length of time Bitcoin spends in consolidation, according to Pentoshi, will likely be influenced by changes in the macro environment.
“The things that could lead to a quicker change would be a change in global financial conditions. If that happens, buying the bottom doesn’t really matter because you have TIME + price on your side, as TRENDS often last years. What will have mattered is that you had the dry powder.”
Bitcoin is trading at $16,185 at the time of writing, a daily decline of over 3%.
