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Can Bitcoin Reach a New All-Time High?
Bitcoin’s performance has been the subject of much discussion recently, with opinions diverging on its future. Panelist Rob Nelson expressed confidence in Bitcoin’s potential to reach new highs, while John Divine, an OTC digital asset trader at BlockFills, offered a more cautious analysis. Their discussion sheds light on the various factors influencing Bitcoin’s market behavior and what investors can expect in the near term.
Nelson opened the conversation with a confident outlook, saying, “I’ll be shocked if bitcoin doesn’t go over $80,000 by the end of the year.”
Divine highlighted the psychological aspects that influence the market. He noted that fear of loss often outweighs the prospect of gain, especially when markets approach all-time highs and then pull back. “Bitcoin clearly rejected that 70% area earlier in the summer,” Divine explained. That rejection triggered selling pressure as investors reacted to lower lows and lower highs.
Seasonality also plays a big role in the current market behavior. Divine pointed out that July is a time when many asset managers and traders are on vacation. “The market is driven by short-term price action,” he said, noting the absence of the usual supply from asset managers that typically supports the market.
The critical technical level for bitcoin is the $53,000 mark, which represents the midpoint between the year’s low and year’s high. Divine stressed the importance of this level, noting that trading below it could signal further market weakness. He added that if bitcoin were to fall to $48,000, it could lead to a capitulation event, pushing prices to their lowest point of the summer or even the year.
Despite the short-term bearish trends, Divine remains optimistic about bitcoin’s long-term prospects. “When you look back on the asset class, we’re still in a positive long-term uptrend,” he said. This broader outlook suggests that despite the current challenges, bitcoin’s overall trajectory remains upward.