Analyst Justin Bennett expects that crypto investors will face much more volatility in the weeks ahead.
Bennett argues that the recent crash in Bitcoin’s price was driven by wealthy players who now have an opportunity to increase their positions in the flagship cryptocurrency.
“Today’s rally is nice to see, but don’t forget who just took BTC from $65,000 to $30,000. Those institutions now need to accumulate. That won’t happen in a day. It can’t…
How do they buy lower? They shake out weak hands. Expect more volatility over the next few weeks.”
While absolving Tesla CEO Elon Musk of the blame of having caused the crash in Bitcoin’s price, Bennett points out that the panic that resulted in the selloff was triggered by institutional investors.
“Panic selling doesn’t occur without panic. Who caused the panic? Institutions…
Apparently, some of you think I’m referring to Elon. He did not take BTC down. Institutions did.”
The cryptocurrency analyst adds that institutional investors are eyeing the $28,000 to $30,000 level for buying opportunities.
“If we’re now in an accumulation phase, institutions will test the limits around $30k, maybe even $28k.”
Bennett also argues that a quick and sustained upward movement (V-shaped recovery) of Bitcoin’s price could occur but only after institutional investors have accumulated to their fill.
“The only way we get a v-shaped recovery is if the institutions allow it. As I mentioned yesterday, if they need longer to accumulate (likely), BTC stays lower…
Everyone wanted institutions in the game. Well, they’re here. That means we’re playing by their rules now.”
Featured Image: Shutterstock/eskystudio