What goes up must come down? Not so fast, says Pierce Crosby.
Following record price highs of more than $24,000 per coin, Bitcoin (BTC) has consolidated, retracing slightly in price. The asset might have stalled for now, but the future remains bullish according to TradingView general manager, Pierce Crosby.
“Right now, I see very near-term headwinds for Bitcoin,” Crosby said, adding:
“The performance recently may seem parabolic, but there are no near-term negative events we expect. This makes for a bullish base case on price.”
Bitcoin cracked its 2017 all-time price high of $19,892 on Dec. 1, 2020 before subsequently retracing more than $1,000. After stabilizing, BTC went on anothe run, slamming through $20,000 and entering price discovery with no historical levels remaining above.
Since its latest surge past $24,000, crypto’s largest asset has traded sideways over the last several days after pulling back slightly. In the past, Bitcoin’s cooling periods have sometimes resulted in money flowing into altcoins, creating a period of positive pricing for digital assets other than BTC. Crosby, however, remains unsure about the alt scene.
“Altcoins I have less confidence in, especially as the rotation into ‘majors’ happens,” he said. “Majors” refers to the share of cryptocurrencies holding large market caps. “We could expect a rotation back to alts in the spring, but unfortunately for ‘alt lovers,’ Bitcoin is on a stronger footing relatively speaking.”
MassMutual and MicroStrategy are two examples of mainstream financial entities jumping on the Bitcoin train, investing large sums of capital.