The crypto strategist who nailed the end of the Bitcoin bull market last year is predicting the emergence of a new trend for BTC.
The pseudonymous analyst known in the industry as Pentoshi tells his 656,200 Twitter followers that he believes the bottom is close for Bitcoin.
However, he highlights that a Bitcoin bottom does not necessarily translate into the birth of a new bull cycle.
“While the BTC bottom may be close, the time aspect of it is unlikely to be close. Time is the most valuable asset we have. Probabilities say we likely spend a lot of it sideways.”
Looking at Pentoshi’s chart, he appears to be predicting the end of Bitcoin’s year-long downtrend as he sees BTC trading sideways in the coming months.
According to the crypto strategist, his prediction stems from the fact that the catalysts that ignited Bitcoin’s previous bull market are now gone.
“We have to ask what conditions led to the last bull market? Do those conditions exist now or will they in such extremes again? Entire globe locked down with stimulus, quantitative easing, rates negative or at zero, paycheck protection program ‘loans,’ $120 billion a month in accommodation from Fed.
So while it is popular to call bottom weekly, and say bottom is close weekly, there isn’t a lot to support that at least on the time axis. Only the price axis, $69,000 to $16,000 doesn’t take a genius to realize we are closer to a bottom.”
Pentoshi says the amount of time Bitcoin spends in consolidation will likely be determined by changes in the macro landscape.
“The things that could lead to a quicker change would be a change in global financial conditions. If that happens, buying the bottom doesn’t really matter because you have TIME + price on your side as TRENDS often last years. What will have mattered is that you had the dry powder.”
At time of writing, Bitcoin is trading at $16,185, down over 3% on the day.