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Bitcoin [BTC] could bottom at $2,000, but will bounce back strong, says former Goldman Sachs official

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Bitcoin [BTC]'s could bottom at $2,000, but will bounce back strong, says former Goldman Sachs official
Source: Unsplash

Michael Bucella, the former vice-president of Multi-Asset Sales at Goldman Sachs, and a partner at BlockTower Capital, discussed the Bitcoin rally to $4,300 on CNBC Fast Money. He said that there might be one last correction for Bitcoin’s bear cycle to come to an end and that it might be just around the corner.

Bucella said that Bitcoin’s bear market is essentially a “long distress cycle” and that it is moving from “weak hands to strong hands”. He added:

“Strong hands are actually quite patient, and so I think a lot of the volatility and the gap risk we see in the market right now is a function of the participants that are still there. And I think we’re actually in a significant distress cycle in crypto, and the last leg of that is typically the most volatile and most short-lived.”

The former Goldman Sach employee said that the bottom for Bitcoin has not come yet and that there is actually another pullback that will occur, which will be shortlived. He added that it is a great entry point for people/institutions who are accumulating and big institutions which are waiting for the last leg of the distressed cycle.



Furthermore, Bucella added:

“The smartest money is moving in…MIT, Harvard, Stanford, Yale, they’re all entering this space through the private side and venture markets. And most of those portfolios are investing in companies who are building the infrastructure for the broader crypto assets space, which includes public markets.”

Michael Bucella said that even though the time Bitcoin will spend at the bottom during the last leg of the cycle is very low, institutional investors are waiting for it as they are accumulating. He continued that Bitcoin’s price could go as low as “$2,000 from here” and stressed that the opportunity for this bottom would be very low.





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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.

Bitcoin

Bitcoin price prediction: BTC prices primed for small correction that could evolve into a major correction

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Bitcoin prices primed for a small correction which could evolve into a major correction
Source: Unsplash

Bitcoin has been on a parabolic bullish rally for quite a while, which was followed by sideways movement of the price. However, at press time, the pattern formed indicated an imminent correction.

At press time, Bitcoin was priced just below $8,000, i.e., $7,979 and had a market cap of $141 billion. The dominance of Bitcoin had reduced as the rally ceased and stood at 57%.

Descending Triangle Pattern

Source: TradingView

As seen in the chart above, Bitcoin’s prices are enclosed in a continuation pattern, i.e., a descending triangle, which is a bearish pattern for Bitcoin. The volume for the same can also be seen decreasing over the course of the pattern, which affirms the above pattern.

When the pattern unfolds, the price will break out of the pattern and head downward; the only thing stopping the price from dipping is important resistance points. The price is likely to hit $7,820 level after the breakout, however, if the former level fails there are subsequent resistance points at $7,674, $7,529, and $7,256, which will be tested in that particular order.

A possible Double Top in the formation?

The above breakout is a short-term movement of price, however, on a longer time frame, the price is stuck in limbo, which explains the sideways movement. The parabolic rally was quick which is why most prominent traders, including Peter Brandt, Tone Vays, and others, are expecting a correction, that is overdue.

Source: TradingView

In the above chart, the way the price of BTC is moving suggests the possibility of the formation of a double top. However, the pattern is only confirmed after the price breaks the lowest resistance, i.e., $7,529. After which, the price will decline quickly into a correction that is being expected by most of the traders in the crypto space.



There is however a scenario where the price might just take off from here since it’s is undergoing a sideways movement, which can also be treated as an accumulation phase.

Conclusion

Crypto Twitter is quite bullish on Bitcoin and expects it to continue the rally, however, technical analysts and traders are awaiting a correction. According to Tone Vays, the price of Bitcoin will reach $4,500 before proceeding to a bull rally; Peter Brandt is also awaiting a pullback. No matter the outcome, it is better to tread carefully or stick to stacking sats.





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