03.08.202118:04 Forex Analysis & Reviews: Bitcoin: long-term bullish, short-term bearish scenario

Dan Morehead, CEO of Pantera Capital, claims bitcoin could close the year in the $80,000-$90,000 range per coin. And in a year, the main cryptocurrency will rise above $120,000.

The forecast came after bitcoin again fell below $40,000 after a weekly sideways recovery.

Morehead notes that there is no doubt that bitcoin will naturally gain in value over time. For this reason, companies such as MicroStrategy and Andreessen Horowitz have announced 10-year plans for cryptocurrency. Among other things, this recovery will be fueled by an apparent increase in massive use by institutional investors. And in the next decade, its cost could rise to $700,000.

Many analysts now expect the BTC price to continue to rise, at least in the medium term. The accumulation trend is still strong among institutional investors. This was evidenced by data from Glassnode last week, which showed that there was a massive outflow of bitcoins from cryptocurrency exchanges. Most of these large volumes usually end up in the hands of institutional investors.

Crypto exchanges now have the lowest amount of bitcoins since November 2020. A decrease in volume could indicate a return in demand, which could push the price up.

Billionaire Tim Draper also predicts bitcoin's rise and price of $250,000 by the end of 2022. He believes this goal will be achieved due to the gradual reduction in the supply of the main cryptocurrency.

Meanwhile, the local scenario remains bearish: bitcoin continues to decline within the broad sideways 28,392.99 - 41,980.24. The last hope for a short-term fall is melting before our eyes: support at 38,610.88 is breaking through. And if a consolidation below happens, the path of BTC/USD downward will open, and the probability of a decline to $30,000 per coin will increase.