Bitcoin has '3 bullish reasons' to head higher after $68K dip — analysis

Bitcoin price strength is not in danger after the Mt. Gox sell-off, says QCP Capital, as multiple factors align to boost crypto markets.

Bitcoin (BTC) dropping to multi-day lows is nothing against the broader BTC price uptrend, new analysis says.

In its latest market commentary sent to Telegram channel subscribers on May 28, trading firm QCP Capital dismissed recent “bouts of supply anxiety.”

QCP Capital: BTC price drops are “blips” in uptrend

Bitcoin bulls have little to worry about when it comes to the BTC price uptrend, QCP Capital argues.

Movement of coins from wallets belonging to defunct exchange Mt. Gox, which sparked a 2% BTC price dip overnight, does not warrant a rethink on market trajectory.

“Movement of BTC from a Mt. Gox cold wallet this morning triggered a sell off below 68k,” analysts wrote.

“However, these bouts of supply anxiety are likely to be blips in a broader trend higher into the end of the year.”

QCP highlighted what it called “3 bullish reasons” to keep the faith in Bitcoin’s robustness going forward.

These focused on strong United States stocks performance spilling over into crypto, political support by U.S. Presidential candidates and uptake of the forthcoming spot Ether exchange-traded funds (ETFs).

“Crypto is seeing unprecedented political support in the US (Bill passed to create regulatory clarity for digital currencies, positive turn by the SEC on the ETH spot ETF, Trump’s overt support with Biden likely to follow suit),” it considered.

All three reasons for optimism are in their early innings, with Ether ETF trading yet to officially begin after a surprise approval by U.S. regulators earlier this month.

Bitcoin “holding the bullish flag”

QCP is far from alone in seeing a bright second half of 2024 for BTC price action.

Related: Bitcoin misses key resistance flip as BTC price falls below $68K

Financial research firm Fundstrat Global Advisors is among the most bullish corporate entities when it comes to Bitcoin this year, predicting $150,000 per coin by year end.

Individual traders, meanwhile, see momentum picking up into June, which, one says, should field a new all-time high of $95,000.

“Bitcoin is holding the bullish flag, despite Mt. Gox transferring a boatload of coins,” another popular trader, Jelle, continued about the short-term trend on the day.

“Market is rangebound — but will quickly turn fully bullish if we get above $70,000 again. Patience until then, but it looks strong.”

An accompanying chart showed a potential impulsive move due to occur as a consolidatory period comes to an end.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.