Bitcoin Analyst Predicts Continued Rally After Temporary Correction
Investor sentiment in Bitcoin (BTC) remains optimistic despite a recent dip in prices. Real Vision crypto analyst Jamie Coutts believes that the world’s largest cryptocurrency is poised for a strong comeback after a temporary correction.
Coutts, a former Bloomberg analyst, took to social media to share his insights with followers. He highlighted that Bitcoin appears to have successfully broken out of a bearish flag pattern, indicating a potential surge in its value. According to him, the absence of historical overhead resistance, commonly referred to as “blue sky,” acts as fuel for bull markets.
To support his bullish outlook, the analyst points to two key indicators: funding rates and the Relative Strength Index (RSI). The funding rates, which represent the fees paid between long and short positions in Bitcoin’s perpetual futures contracts, have receded to more normal levels. This suggests that the market is stabilizing after a period of excessive speculation. Additionally, the RSI, a widely used momentum indicator, has retreated from overbought levels, indicating that Bitcoin is not currently overvalued.
Coutts acknowledges that long-term holders of Bitcoin have been selling as the cryptocurrency reaches new all-time highs. However, he believes that the demand generated by recently launched spot Bitcoin exchange-traded funds (ETFs) could compensate for this selling pressure. The extent to which these ETFs can absorb the supply will have a significant impact on the future trajectory of the bull market.
In a previous statement, Coutts expressed his belief that gold will underperform digital assets in the current market cycle. This sentiment aligns with the growing popularity of cryptocurrencies as an alternative investment option.
At the time of writing, Bitcoin is trading at $69,909, experiencing a slight decrease in value over the past 24 hours. Despite this minor setback, the overall outlook for Bitcoin remains positive, with experts like Coutts anticipating a significant rally in the near future.
Analyst comment
Positive news: The Bitcoin analyst predicts a continued rally after a temporary correction, highlighting indicators such as the bearish flag pattern breakout, normalizing funding rates, and a retreat from overbought levels on the RSI. The demand generated by recently launched spot Bitcoin ETFs could compensate for selling pressure. Gold is expected to underperform digital assets. Bitcoin is currently experiencing a slight decrease in value but overall outlook remains positive, with a significant rally anticipated in the near future.
