- Bitcoin’s volatility means that a 50% loss is just as possible as a 200% gain, according to one strategist.
- The strategist believes the best course of action would be to hold a nominal amount of Bitcoin indefinitely.
- On-chain data suggests both whales and retail investors have been buying Bitcoin.
Bitcoin’s volatility means that a 50% loss is just as possible as a 200% gain, according to Ryan Grace, head of wallet developer tastycrypto. According to Grace, for those who believe in Bitcoin, the best course of action would be to hold a nominal amount of the cryptocurrency indefinitely.
Grace made these statements and others while speaking with Coin Edition about the recent Bitcoin volatility. He noted that data from on-chain analytics suggest both whales and retail investors have been buying Bitcoin, a trend that typically coincides with upward price movement.
The tastylive’s Crypto Concepts co-host explained that adding to this bullish outlook, Bitcoin’s surge beyond $35,000, supported by a positive MACD and increased trading activity, suggests the rally has momentum. He further noted that the recent surge coincides with the lead-up to the Bitcoin halving event, now less than 200 days out, and the growing likelihood of a spot Bitcoin ETF approval, both of which underscore growing investor confidence.
When asked about the possibilities of pullbacks in Bitcoin’s price, Grace said that Bitcoin pullbacks can occur unexpectedly, even though the current indicators seem to align with a long-term bullish trend. However, he noted that the approval of a spot bitcoin ETF would open the floodgates to trillions of dollars managed by Registered Investment Advisors (RIAs), and this inflow (or the anticipation of it) would likely keep the bears at bay.
According to Tim Zinin, founder of Botanica School, a crypto educational platform dedicated to bridging the knowledge gap in the digital assets domain, predicting Bitcoin’s price is like predicting the weather in a storm. However, he echoed an adage in the crypto industry that says the best time to buy Bitcoin was yesterday, and the second best time is now.
Bitcoin bulls re-emerged yesterday and pushed BTC above the $35,000 resistance. The move produced a classic bullish candle on the daily chart that opened at $34,667 and closed at $35,440, according to data from TradingView. The flagship crypto’s outlook remains bullish as the price was trading at the upper limit of the range which formed while the price consolidated from the recent 30% rally.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
