- Bitcoin price is facing resistance at $7,000 but according to Dan Morehead this is a temporary setback.
- Bitcoin is set for a rally past its all-time highs as investors explore opportunities that will emerge post-global economic recession.
Bitcoin price is currently stuck between a critical resistance at $7,000 and key support at $6,400. The largest cryptocurrency exhibits uncertainty regarding the direction it will take in the next few days. A break above $7,000 could cement the bulls’ position in the market, sending BTC/USD higher above $8,000. However, the longer BTC stays under $7,000 it increases its vulnerability to declines and weakening the bullish trend. In this case, a return to $5,000 support is not out of the picture.
Expert remains optimistic amid the uncertainty
Dan Morehead, the CEO of Pantera Capital CEO, a cryptocurrency hedge fund company is choosing to stay positive amid widespread skepticism surrounding Bitcoin price ability to recover even to highs traded in February. In his opinion, Bitcoin could still hit its all-time high around $20,000 in 12 months.
In a letter addressed to the investors of the company, Morehead said that countries should prepare for “a real recession – negative global growth.” However, he adds that the ongoing economic downfall will set the framework for Bitcoin and the larger cryptocurrency market to bounce to higher levels.
Bitcoin was born in a financial crisis. It will come of age in this one…
Now that we’re in the trillions, the deficit just simply has to have a positive impact on the price of things not quantitatively-erasable – stocks, real estate, cryptocurrency relative to the price of money. Said another way, the BTC/USD cross-currency rate will rise.
He predicts that Bitcoin will rise in stages as investors explore opportunities arising from the federal deficits in the United States. Morehead continued:
The price of bitcoin may set a new record in the next twelve months. It’s not going to happen overnight. My best guess is that it will take institutional investors 2-3 months to triage their current portfolio issues. Another 3-6 months to research new opportunities like distressed debt, special situations, crypto, etc. Then, as they begin making allocations, those markets will really begin to rise.
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