Two popular crypto analysts believe Bitcoin is revving its engine for the next bull run.
Tone Vays says a fundamental shift is underway. On the latest episode of Trading Bitcoin, Vays says revelations that demand for BTC is far outpacing the amount of new Bitcoin being created could become a significant catalyst for the leading cryptocurrency, The Daily Hodl reported.
The institutional crypto asset manager Grayscale is fueling the buying frenzy as high-net-worth investors purchase GBTC, which is fully backed by real BTC, at record rates.
“That is a very, very bullish fundamental scenario. I wouldn’t call that a news event. It’s a borderline news event and a fundamental event,” he says. “Now that everyone knows it, the FOMO can help drive Bitcoin higher. But knowing that GBTC is buying up the majority of the Bitcoin is basically telling everyone there’s not enough supply of Bitcoin.”
Vays says the heightened demand for Bitcoin after the halving, which cut the rate of new supply entering the market by half, shows that forecasts such as the stock-to-flow model may prove to be accurate. The model, pioneered by the anonymous analyst PlanB, indicates BTC will hit $288,000 by the end of 2024.
“The stock-to-flow model is clearly showing its prowess in the fact that there’s more demand for Bitcoin at the moment than supply,” he says. “Which is very good, and it can definitely send Bitcoin higher. Like I’ve been saying since these lows, I am now a bull. I am looking for pullbacks when it starts to get out of control, but I am generally a bull… Buy all dips. It may be difficult to time some of these dips, but this is the time to buy all dips. The capitulation has ended.”
Despite his optimism, Vays warns that Bitcoin is once again trending alongside the S&P 500, which could be a problem if the stock market takes a hit.
“Now there’s one more factor here and that is the S&P 500, and it’s a pretty significant factor,” he says. “So two things on the S&P 500. First of all, Bitcoin is rallying with the S&P. The S&P has not yet pulled back since March. So we don’t know what Bitcoin is going to do if the S&P craters, which I expect it to crater.”
Positive Crypto is feeling upbeat
Meanwhile, Positive Crypto has declared that the largest cryptocurrency’s 896-day climbdown will soon be over, Cointelegraph reported.
Bitcoin (BTC) has spent almost 900 days correcting from its $20,000 all-time highs – but its trip to $100,000 is about to start, the analyst says.
The time since December 2017 has been “one massive accumulation phase,” during which investors repositioned themselves and bought in.
This “consolidation structure,” as Positive Crypto calls it, is now ripe for disintegration, to give way to a new bull run which will obliterate the $20,000 zone.
He says, “The last 896 days were simply one massive re-accumulation phase before the run to 100k+ #bitcoin, and the consolidation structure will soon be broken. Are you prepared?”
Despite wobbling around the halving and after, the Bitcoin price has entirely erased losses from its March crash, which Positive Crypto notes formed a “higher low” compared to the peak of the bear market in December 2018.
That cycle of “higher lows” itself positions the market for upside, the chart suggests.
