# CRYPTO ANALYSIS

Crypto Pre-drink: May 10, 2024

Crypto Pre-drink

KEYTAKEAWAYS

  1. Pantera Capital forecasts Bitcoin's surge to $117,000 by 2025, leveraging the historical stock-to-flow model and halving events.
  2. Institutional investors remain cautious as Bitcoin fluctuates unpredictably, creating a battleground between bulls and bears.
  3. Positive fundamentals like Bitcoin ETFs, the halving cycle, and Ethereum's Cancun upgrade offer a supportive backdrop, despite a subdued altcoin market.

CONTENT

In the Crypto Pre-drink, we serve up a daily shot of the hottest crypto news and market insights to fuel your investment decisions.

 


PANTERA CAPITAL’S BITCOIN PROJECTION

 

Prominent crypto venture capital firm Pantera Capital released a letter to investors predicting that Bitcoin could reach $117,000 by August 2025. They based this projection on the historical stock-to-flow model around Bitcoin’s halving events. They reiterated their belief that Bitcoin prices had bottomed out at $17,000 in November 2022 and anticipated a rebound due to the halving. Comparing past forecasts with actual data, Pantera Capital expressed confidence in their outlook.

 

MARKET DYNAMICS AND INVESTOR BEHAVIOR

 

Recent data shows that only the IBIT ETF saw an inflow of 185 BTC yesterday, while other ETFs had zero inflows or outflows. Institutional investors remain cautious, waiting for a clear market signal before making their next move.

 

Bitcoin has been on a downward trend for nearly 30 days, fluctuating between $60,000 and $65,000. Despite occasional brief rises, it often dips below previous lows without any consistent pattern, frustrating many investors. Market swings like these are common in both bull and bear markets, usually occupying about 80% of the time. Gradual changes in trends are typical, and rapid shifts are rare.

 

By analyzing the four-hour time frame, the market shows a bearish structure, but this can also be seen as a consolidation period. Different interpretations affect trading approaches, with potential for a head-and-shoulders pattern. Key support levels should be monitored, but until a clear reversal pattern is seen at the hourly level, support remains unconfirmed. The market remains a battleground between bulls and bears, with neither side having a clear advantage.

 

FUNDAMENTALS AND TECHNICAL ANALYSIS

 

Bitcoin ETFs, the halving cycle, and Ethereum’s Cancun upgrade all have positive implications for the crypto market. With favorable fundamentals, funding, and news supporting the sector, technical analysis will reveal how things unfold. Watching market trends closely is key to understanding whether the market will rise or fall. By mid-May, the direction should become more apparent.

 

 

The altcoin market remains subdued with little enthusiasm, suggesting that traders are preparing for the next rally. Despite Bitcoin’s post-halving consolidation typically lasting 4-5 months, some analysts believe this period could be shorter this time around. Although many altcoins have experienced declines, some have shown sharp rebounds, signaling an imminent end to the consolidation period.

 

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DISCLAIMER

CoinRank is not a certified investment, legal, or tax advisor, nor is it a broker or dealer. All content, including opinions and analyses, is based on independent research and experiences of our team, intended for educational purposes only. It should not be considered as solicitation or recommendation for any investment decisions. We encourage you to conduct your own research prior to investing.

 

We strive for accuracy in our content, but occasional errors may occur. Importantly, our information should not be seen as licensed financial advice or a substitute for consultation with certified professionals. CoinRank does not endorse specific financial products or strategies.


WRITER’S INTRO

CoinRank

CoinRank Exclusive brings together primary sources from various fields to provide readers with the most timely and in-depth analysis and coverage. Whether it’s blockchain, cryptocurrency, finance, or technology industries, readers can access the most exclusive and comprehensive knowledge.


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