18.06.202109:47 Forex Analysis & Reviews: Dan Morehead: Now is the time to buy Bitcoin

While the fundamental background for bitcoin remains very unpleasant, many important and well-known representatives of the financial and cryptocurrency sphere continue to insist that bitcoin will grow soon, and in 2021 it will update its maximum value. For example, this opinion is shared by the head of the cryptocurrency hedge fund Pantera Capital, Dan Morehead. In his opinion, the decline in the rate of almost all cryptocurrencies in recent months, as well as some panic in the market, makes it possible for everyone to buy bitcoin at a very attractive price. According to Morehead, cryptocurrency has been "below trend" for a very short time, so such periods of time are an excellent opportunity to buy coins. He also does not consider bitcoin overbought and excessively expensive.

"Profit is now 281% on an annualized basis, and looks absolutely normal given the amount of money printed by central banks over the past year," said the head of Pantera Capital. In addition, Morehead said that rumors from China about the complete ban on mining in the country may remain rumors. "I counted at least 8 cases when the PRC authorities were going to ban bitcoin," he said. Morehead also stressed that bitcoin could decline in recent months due to the fact that the tax payment period is coming in the United States, and that in past years, the cryptocurrency also sagged noticeably during these periods of time.

At the same time, the analytical company Santiment calculated that in recent weeks, large investors have bought another 90,000 bitcoin coins, and now about 48% of all mined coins are on wallets with sizes ranging from 100 BTC to 10,000 BTC. Thus, these wallets now store about 9 million "digital gold" coins with a total value of about $360 billion at the current exchange rate. One could conclude that the "whales" continue to build up long positions on bitcoin, if among these wallets there were not a sufficiently large number of cryptocurrency exchanges and various services that simply store the coins of their clients, accumulating them.

In any case, even if large investors and institutions really started buying bitcoin again, this does not have a beneficial effect on the rate. This means that the demand is still too low so that bitcoin can seriously count on strong new growth. Or the supply of bitcoin is too large and is simply not covered by demand. One way or another, bitcoin failed to overcome the resistance level of $40,700 and now it can rush down again. We believe that cryptocurrency sales with targets of $35,000 and $30,500 are now more relevant.