Analysts believe that any new Bitcoin flash crash offers opportunities
Last Updated on 30 November 2023 by CryptoTips.eu
Bitcoin, the largest digital currency, is having a very good year in 2023. Thanks to increased institutional interest from many companies on Wall Street, it seems like we are counting down to an approval for a Bitcoin ETF. Business websites such as Bloomberg and Nasdaq assumed this summer that we had a 75% chance of a Bitcoin ETF approval before the end of this year. Now the counter is already at 90%.
For many Americans, the conviction of Sam Bankman-Fried also means that a bad page can be turned. Social media is once again quite positive about crypto, after the disaster year that was 2022.
Matrixport analyst Markus Thielen said earlier this week:
“We anticipate bitcoin surpassing $38,000 by the end of this month with an 80% probability, followed by a rally above $40,000 in December with 90% probability.”
The $38,000 limit has already been exceeded several times.
Technical analysts predict that the $40,000 cliff will also be cleared quite quickly, although many also warn that Whales (Bitcoin buyers who have an abnormally large stash of digital coins) will then sell and take their profits. If Bitcoin then falls back to $35,000, in a so-called ‘flash crash’, some analysts see this as a buying opportunity for smaller investors.
Flash crashes happen often in a year where Bitcoin rises exponentially. The last time we reported on one was in April of this year.
Analysts from Wolfe Research even called such a moment an opportunity when they spoke this week to the influential broadcaster CNBC.
The anonymous Dutch quant PlanB also predicted this week that Bitcoin would trade above $35,000 for a long time from now on, and that any time the largest digital currency trades against it, you know what to do according to these analysts.
🚨BREAKING: Bitcoin valuation based on difficulty (hashrate) increased to $35k yesterday. IMO this could mean that, apart from possible black swans or short term volatility, based on $/kWh-arbitrage fundamentals ... BTC will never go below $35k ever again. pic.twitter.com/JPLkXieQAP— PlanB (@100trillionUSD) November 27, 2023
However, don’t forget to check your counter-trade. This is the person who has a different opinion.
Capo of Crypto (770,000 active followers) expects Bitcoin to first make a very heavy pullback. We’ll see at the end of the year who is right.