Bitcoin’s price remains under intense pressure this month, having plunged 31% from its all-time high, as exchange-traded fund outflows jumped.
Summary
- Anthony Pompliano believes that the Bitcoin price will rebound to a record high.
- He noted that the recent Bitcoin crash was a healthy reset.
- Potential catalysts are the Fear and Greed Index, healthy open interest, and Federal Reserve cuts.
Bitcoin (BTC) traded at around $87,000 on Nov. 24, up by 6.5% from its lowest level this month. While this rebound could be a bull trap or a dead-cat bounce, Anthony Pompliano and other crypto experts believe that the coin is about to bottom.
In a CNBC interview, Pomp noted that the Bitcoin price had crashed by 30% from its peak over 30 times in the last decade. It has also dropped by over 50% more than five times. Fears of an eventual Bitcoin collapse always accompany these dips.
Pomp also pointed to the Crypto Fear and Greed Index, which dropped to the extreme fear zone of 8 last week. In most cases, crypto bull runs begin when there is extreme fear in the market. He said:
“We are somewhere around the bottoming, and the market may grind sideways for a while and then start grinding upwards in the next couple of weeks.”
Meanwhile, Pomp believes that the ongoing Bitcoin price retreat is a healthy reset, especially on leverage. He pointed out that leverage has plunged since the October 10 liquidation event, when traders lost over $20 billion in a single day.
Indeed, the amount of open interest in the crypto industry has been in a downward trend. CoinGlass data shows that the futures open interest has tumbled to $127 billion, its lowest level since May 8 and much lower than the year-to-date high of $250 billion.
Other top crypto analysts have delivered bullish Bitcoin price forecasts during the ongoing crash. Tom Lee, the founder of FundStrat, believes that the coin will surge from $86,000 today to $200,000 by the end of January.
Strategy’s Michael Saylor, Winklevoss Twins, Cathie Wood, and Cardano’s Charles Hoskinson say Bitcoin and other top coins will also rebound in the coming weeks.
Some of the potential catalysts for Bitcoin include Federal Reserve interest rate cuts, regulatory clarity in the United States, and continued accumulation by companies like Strategy and Metaplanet.