Following Bitcoin’s (BTC) decline from $126,000 to $105,000, cryptocurrency expert Shanaka Anslem Perera offered an insightful perspective.
Perera suggests that despite the market’s panic-driven sell-off, savvy investors are discreetly accumulating Bitcoin. This behavior mirrors the prelude to the significant surge witnessed in 2020.
“Wall Street is labeling it capitulation while Reddit is lamenting a bear market. However, there’s an overlooked bear trap this time,” remarked Perera.
Analyzing Glassnode data, Perera notes that wallets holding between 1 and 1,000 BTC have been consistently increasing their holdings since early October. These investors persist in purchasing even as Bitcoin’s price has dipped from $118,000 to $108,000.
Highlighting that Bitcoin’s MVRV Z-Score stands at 2.15, Perera explains this typically signals accumulation phases:
“When the Z-score falls below 2, it enters the pain zone. That’s when astute investors begin accumulating.”
Perera also points out that institutional demand driven by ETFs far surpasses available Bitcoin supply.
The analyst compares current market conditions with those preceding the major rally of 2020, when Bitcoin was deemed “dead” around $12,000 before surging by 170%.
A different analyst, Axel Adler identifies a critical support range between $106,000 and $107,000 while Matt Mena from 21Shares forecasts a potential rise of Bitcoin to reach $150,000 by year-end .
Perera further recalls how a US government shutdown at late-2018 marked a bottom for Bitcoin as its value dropped from $6k downwards towards just under half before rebounding strongly thereafter .
In light of recent events involving another possible governmental closure currently underway now too – there may be similar effects according Joe Consorti who noted lagging correlation approximately lasting one hundred days vis-a-vis gold movements alongside JPMorgan models predicting fair valuation approximating roughly one hundred sixty-five thousand dollars come December timeframe .
Summarizing his insights , he concludes :
Every significant low point within history appears eerily familiar : despair followed closely behind capitulation then quiet buying spree led primarily through informed capital sources . Examples include three thousand dollars back during twenty eighteen era , twelve grand two years later plus presently hovering around ten five figure mark potentially signaling next phase upward trajectory .
This level might represent final stage prior ultimate ascent should support hold steady near hundred-thousand threshold ultimately propelling prices upwards reaching somewhere between fifteen-and-sixteen-half-grand range nearing calendar conclusion ********.</p&g;;