Two catalysts could serve as a tailwind for Bitcoin (BTC) over the coming months, according to a widely followed crypto trader.
The pseudonymous analyst Pentoshi tells his 700,800 Twitter followers that the Bitcoin halving event and the potential approval of a spot BTC exchange-traded fund (ETF) in the US offer a “lot to look forward to,” especially after enduring an adverse market environment.
Pentoshi, however, says “difficult” times lie ahead over the short term.
“We survived FTX, exploits, stablecoin depegs, everything going to 0. Nothing was safe. And it will happen again when the market needs to deleverage.
However:
Price-based capitulation [is done].
Time-based [capitulation is] almost done.
So close and so far away.
There is a lot to look forward to. By the time the halving comes, we will also have a Bitcoin spot ETF. Two great catalysts.
Don’t lose sight of the bigger picture in the lower time frames. We still have a somewhat-difficult time ahead short term. But there is a lot of light at the end of the tunnel.”
In price-based capitulation, which is characterized by panic selling and high trading volumes, an asset drops to a price that most investors are willing to offload regardless of the long-term outlook.
In time-based capitulation, which is typically considered a sign of a bottom forming, an asset’s price falls or consolidates in a range for an extended period without signaling any major trend.
At time of writing, Bitcoin is trading for $29,162.
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