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Bitcoin’s Rally Isn’t Over – But a Drop to $110K Could Be Just What It Needs
In a recent market update, QCP Capital has cautioned that Bitcoin’s current rally may not be over just yet. While the asset did experience a brief pause after breaking the $120,000 mark, subsequent profit-taking flows led to a consolidation at around $116,000. This correction, however, could provide the much-needed stability for the current upswing to consolidate and potentially gain further momentum.
A Potential Pullback
QCP Capital suggests that Bitcoin might see another pullback towards its previous cycle high of around $110,000. This drop could actually be a healthy development for the asset’s future growth. In fact, such a correction would not only provide a much-needed pause but also enable traders to re-enter or scale their positions, potentially leading to an extended rally.
Seasonal Factors
The market update highlights that any potential dip towards $110,000 might coincide with seasonal factors, which typically result in a temporary lull in trading activity as the summer holidays approach. The fact that US equities have held firm despite the presence of several headwinds, including base tariffs and geopolitical tensions surrounding Russian oil purchases, only adds to this uncertainty.
Cryptocurrency analyst Tom Lee has also predicted that Ethereum will exceed its 2021 all-time highs due to a combination of stablecoin growth and real-world asset tokenization.
Source: cryptopotato.com
