- Analysts are expecting a major Bitcoin bull cycle
- Theta Seek believes Bitcoin would not experience a mega pump in Q4
- Macroeconomic trends are favoring an exponential price rally in the coming years
Bitcoin News Today – The price of Bitcoin has been hovering around the $11,500 range over the past couple of weeks. With Bitcoin fundamentals currently aligning in favor of bulls and prices pushing higher, analysts are starting to expect a strong rally into the end of the year.
However, this might not happen, according to an analyst keeping an eye on options. The analyst said that the price of Bitcoin might not surge higher with whales likely to sell into the end of the year for tax purposes.
Bitcoin (BTC) Price Today – BTC / USD
An Analyst Believes Bitcoin Might Not See a Mega Pump in Q4
Theta Seek – a digital currency analyst focused on options – believes that Bitcoin might not experience any major rally at the end of this year. Recently, he shared a chart suggesting that with options underwriters pricing monthly implied volatility at about 30 percent and whales are likely to sell the digital currency for tax purposes. This means there may be near term consolidation or downtrend.
“It’s hard to for me to imagine a Q4 pump mega. All whales selling in order to prep to tax. Unless you’re telling me that the majority of crypto are in tax havens such as SG and HK Sentiments shared amongst options market makers who are pricing monthly IV at 30%+.”
Its hard to for me to imagine a Q4 pump mega.
All whales selling in order to prep to tax.
Unless you’re telling me that the majority of crypto are in tax havens such as SG and HK
Sentiments shared amongst options market makers who are pricing monthly IV at 30%+#BTC pic.twitter.com/sUSRiLI2q2
— Theta Seek (@thetaseek) October 17, 2020
Others Believe a Massive Rally Is Still Possible
Regardless of some thinking that it might take a very long time for a Bitcoin mega pump to occur, many believe the mega pump is already on the way. The CEO of Civic and a partner at Multicoin Capital – Vinny Lingham – recently said that there is a high possibility that Bitcoin rallies parabolically over the next year. In a comment on Twitter, the CEO said:
“I haven’t been this bullish on #Bitcoin since 2016. Macro events are teeing us up for another bull run. BTC could go 3-5X in the next 12 months, but if it goes 5X+, we’re back to bubble zone. Key indicator is BTC dominance – if it drops below 35% during the run, caveat emptor.”
Many market participants have also echoed this optimism. The co-founder of Gold Bullion International – Dan Tapiero – also said that he believes the value of Bitcoin would surge five to ten times this market cycle. He believes that microeconomic trends are favoring an exponential price explosion in the coming years.
In the near term, though the price of the digital currency has been relatively stagnant, many believe it can amass bullish traction and break over the $12k mark.
Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.