Bitcoin’s Price Movement Mirrors 2019 Surge: Crypto Analyst

Bitcoin’s Price Movement Mirrors 2019 Surge: Crypto Analyst

1 min read

Recent Bitcoin’s price surge is reminiscent of its pattern from 2018 into 2019, according to Vetle Lunde, a crypto markets analyst at K33 Research. Lunde predicts that Bitcoin could reach as high as $45,000, stating that markets appear to have stabilised as “rotten fruits” have been washed out of the industry. He attributes the industry-wide crisis of 2022, which included multiple major firms declaring bankruptcy, to overexposure when interest rates were zero.

Lunde’s comments suggest that the entire market is in a more robust stage and can handle higher interest rates for longer. He notes that the current drawdown and recovery stage is remarkably similar to that of 2019, both in duration and price movement and believes that the negative to neutral sales of derivatives, despite recent price gains, are further signs of investor caution.

However, he does think that the faint signs last week that the U.S. central bank would scale back its hawkish monetary policy amid mildly encouraging inflation data could boost market sentiment.

Lunde also states that throughout the latter part of 2022, there was a lot of forced selling and selling from cautious investors. This led people to be underexposed and enticed many people to short crypto, creating a dynamic where Bitcoin feeds on short squeezes and moves higher. Although the sentiment could change, the market’s relatively low liquidity remained a potential weight on future pricing.

In conclusion, Lunde’s analysis suggests that the crypto markets have gone through a challenging time which saw many risk-averse investors exiting the crypto markets, but the recent stabilisation and weeding out of bad actors have made it more robust and able to handle higher interest rates for longer. The industry is now in a position where it can bounce back, and Bitcoin’s price could potentially reach $45,000 in May.


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