Institutional cryptocurrency firm Stack Funds believes that Bitcoin (BTC) is “very close to the bottom” and remains bullish in the long term.
In a new report released on June 23, analyst Lennard Neo said there is no reason to be bearish on bitcoin despite the price plunge.
Stack: Bitcoin’s Macro View “Remains Unchanged”
The report comes a day after bitcoin/USD fell below $30,000 for the first time in six months, before rebounding to its current level above $34,000.
The volatility is due to a realignment in the mining industry, which now appears to be shifting massively from China to other countries.
Stack concluded, “Bitcoin is down 28% after failing to break $42,000 late last week. After yesterday’s decline, bitcoin has regained some lost ground and is now trading at around $34,000.”
“Our macro view remains unchanged as we expect bitcoin to establish a position in further consolidation.”
Neo highlighted an important date coming up in the short term – second quarter options expire in the last week of June. The price of the $2.3 billion worth of options should complete the consolidation once they expire.
Option expiration events can put pressure on bitcoin beforehand, but as Cointelegraph points out, not every expiration will have an impact on the market.
“Adding to the uncertainty is the $2.3 billion in bitcoin options, which expire this Friday – part of the reason for the increased market volatility,” he added.
“That said, we think most of the expectations have been absorbed by the market and we expect a relatively quiet trading day in the coming days.”
Bitcoin Options Expiration Chart Source: Stack Funds
Not all bad news?
Traders may be weighing in carefully after this week’s events. In the last 24 hours alone, more than $1 billion in positions were liquidated due to rapid price movements.
That said, the previous week saw much less liquidation of long positions, which Stack attributed to a “cautious” mood among market participants.
With major players like MicroStrategy adding to their bitcoin holdings at $30,000, there is little left to make skeptics think the market will see an apocalyptic correction.
Neo concludes, “Combining all of these factors, we think bitcoin is very close to a bottom, at least in this current wave.”
“We will be watching bitcoin prices closely after options expiration, which will be interesting in the first week of July, which is the beginning of the third quarter.”
July will also see the unlocking of major funds for investors in the Grayscale Bitcoin Trust ($GBTC). Some believe this has increased the selling pressure on Bitcoin and that the willingness to sell Bitcoin will more or less disappear from the market after this event.
That said, not everyone is convinced that the $28,600 low seen on Tuesday will be bitcoin’s final bearish turning point.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/agency-report-bitcoin-price-very-close-to-bottom-still-bullish-in-the-long-run/
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