A widely followed crypto strategist believes that Bitcoin’s (BTC) long-term upside potential is unlimited despite its recent price doldrums.
Pseudonymous analyst Pentoshi tells his 801,000 followers on the social media platform X that while he’s bullish on Bitcoin for the long haul, the crypto king may see a significant correction before heading higher.
“For BTC, I wanted to start off with what I view to be the worst-case scenario. Let’s say, $48,000-$51,000, essentially 20-25% lower.
And in this scenario, people should get more bullish the lower it [goes] because the upside becomes greater. But again, let’s call that max drawdown.
Hard to imagine now, but not out of the realm of possibilities. It’s the spot where I’d max allocate.”
Source: Pentoshi/X
According to Pentoshi, the current macro landscape suggests that it’s only a matter of time before the Federal Reserve begins to loosen monetary policy – a condition that has ignited huge Bitcoin bull markets in the past.
He also says that with the launch of spot market Bitcoin exchange-traded funds (ETFs) earlier this year, more people are now vying to get BTC exposure. He goes on to predict that other nations will follow in the footsteps of El Salvador and begin accumulating
“The upside, however, is uncapped because we will go back into a period of heavy printing soon.
So I see BTC as something separate from the altcoin market in the sense that it will most likely drift up forever through ETFs, and with a finite supply and people competing for it, including more nation-states in the future.
Altcoins will have separate cycles entirely in my opinion.”
The top trader concludes his Bitcoin outlook by saying that has witnessed parabolic rallies in the past, even before the existence of ETFs or the accumulation of nations such as El Salvador.
“BTC can go on its own rampages for months, and that was before ETFs and 401k, + nation-states.”
At time of writing, Bitcoin is worth $62,047.
Generated Image: DALLE3
