Key Points
- Despite recent drops, Bitcoin’s overall price trend remains upward, according to QCP Capital.
- Three factors, including strong US stock performance, political support, and upcoming spot Ether ETFs, are bolstering Bitcoin’s resilience.
QCP Capital, a trading firm, has stated that the recent drop in Bitcoin (BTC)‘s value to multi-day lows does not challenge the larger upward trend of BTC’s price.
Bitcoin’s Upward Trend: A Closer Look
QCP Capital has reassured Bitcoin investors that there is no reason to worry about the BTC price trend. The firm argues that the recent 2% dip in BTC price, triggered by the movement of coins from wallets associated with the now-defunct exchange Mt. Gox, does not necessitate a reevaluation of the market’s course.
The firm explains that such “supply anxiety” episodes are likely to be mere “blips” in a broader upward trend that will continue until the end of the year.
The Three Bullish Reasons
QCP Capital has identified three “bullish reasons” for maintaining confidence in Bitcoin’s robustness. These include the strong performance of US stocks spilling over into crypto, political support from US Presidential candidates, and the anticipated adoption of the forthcoming spot Ether exchange-traded funds (ETFs).
The firm notes that crypto is experiencing unprecedented political support in the US, with positive developments such as regulatory clarity for digital currencies, a positive turn by the SEC on the Ethereum (ETH) spot ETF, and overt support from President Trump, with likely follow-up support from Biden.
These reasons for optimism are still in their early stages, with Ether ETF trading set to officially commence following surprise approval by US regulators earlier this month.
QCP Capital is not alone in predicting a bright future for BTC price action in the second half of 2024. Financial research firm Fundstrat Global Advisors is among the most bullish corporate entities on Bitcoin this year, forecasting a price of $150,000 per coin by year-end.
Individual traders also anticipate momentum building into June, which some predict will yield a new all-time high of $95,000. Despite the recent transfer of a large number of coins from Mt. Gox, one popular trader, Jelle, maintains that Bitcoin is “holding the bullish flag”.
For now, the market remains rangebound. However, Jelle suggests that it will quickly turn fully bullish if the price rises above $70,000 again. An accompanying chart suggests a potential impulsive move as a consolidation period ends.
