Bitcoin (CRYPTO: BTC) staged a strong relief rally on Wednesday, but the big question on every investor’s mind remains: Is this the bottom for the world’s leading cryptocurrency?
Bitcoin Bottom Still Not In?
Michael Terpin, CEO of Transform Ventures and author of the book “Bitcoin Supercycle,” told Benzinga the market is “knee-dip” into “Bitcoin Fall” after the bubble popped in early October.
For context, Bitcoin peaked at $126,000 on Oct. 7 but has since crashed more than 42%. The apex cryptocurrency came perilously close to sinking below $60,000 early last month.
“Historically, it takes a full year to reach ‘capitulation,’ the point where all of the short-term holders have given up and sold, often at a steep loss,” Terpin stated. “When that occurs, there are only long-term holders left, so the price cannot drop any lower. That’s when the new bull market begins.”
Terpin anticipated one last “sharp move down,” caused by an “external shock” such as a major fund or exchange going bankrupt.
“I see this taking down to a cycle low between $40,000-$55,000. This is consistent with my predictions from 2024 when the latest cycle began,” they projected.
Is The Market Fixated On The Bottom?
Joshua Kim, CEO and Founder of decentralized crowdfunding platform DonaFi, meanwhile, urged market investors not to get “fixated” on bottoms and tops.
“The very modest and slight uptick in sentiment is notable, but we’re still in extreme fear territory,” Kim remarked. “That’s usually when long-term entries start making sense.”
Kim emphasized that if Bitcoin consolidates in a narrow range for weeks, it could signal building momentum and advised market participants to focus on historical support levels.
Bitcoin To Move Sideways Through Tax Season
Chris Kline, COO & Co-Founder at BitcoinIRA, expects the crypto market to remain “choppy” through tax season, with heightened volatility possible this summer amid shifting macro conditions and the midterm cycle.
Cline said that the new Federal Reserve Chair, Kevin Warsh, brings a “credible posture” toward sustainable growth, but warned that monetary policy will not be enough to bail out weak positions.
Price Action: At the time of writing, BTC was exchanging hands at $72,459.98, up 6.11% in the last 24 hours, according to data from Benzinga Pro.
Photo courtesy: Shutterstock
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