Bitcoin Set for Explosive Bull Run After Potential Dip Below $50,000, Analyst Suggests

As a seasoned crypto investor with over a decade of experience in this volatile market, I find myself intrigued by Cole Garner’s latest analysis. Having weathered multiple Bitcoin bull runs and bear markets, I can attest to the unpredictability that comes with this digital asset.


In simpler terms, the value of Bitcoin might experience a strong upward surge, potentially reaching over $80,000, but prior to this increase, there could be a period where its price falls significantly, dropping it below $50,000. This potential fall is referred to as capitulation.

As per well-known cryptocurrency analyst Cole Garner’s recent posts on microblogging platform X (previously known as Twitter), there seems to be a tightening of liquidity, which is often a precursor to a full bull market. This tightening, according to Garner, originates from central banks, suggesting that Bitcoin could continue to grow due to the ongoing increase in the money supply.

Gearner pointed out that global central bank liquidity has been growing  and while he believes “more downside could come first,” central banks in China, Japan, and the United States should keep global money supply growing.

1/ On-chain liquidity is becoming scarce, hinting at a potential wave of sell-offs approaching.

— Cole Garner (@ColeGarnersTake) October 10, 2024

Additionally, he highlighted the decreasing availability of significant stablecoins like USDT and USDC starting from this month. He noted that the trend in the quarterly growth of stablecoin supply often precedes price fluctuations.

The analyst who provided a chart indicated a possible drop in Bitcoin’s value under $50,000, followed by a new surge (bull run) that might push its price beyond $80,000 in the upcoming period.

If the price is approaching levels under $100k, it’s more like a shrug than a facepalm because we already have a new high and a bullish market structure in place. Even when we see a range low during times of maximum fear, the overall sentiment remains optimistic.

— Cole Garner (@ColeGarnersTake) October 10, 2024

From my recent analysis, it appears that short-term Bitcoin (BTC) holders have been steadily choosing to exit the market. This trend seems to be reducing the overall selling pressure.

Based on an analysis I’ve performed as an analyst, I’ve noticed a significant decrease in the supply of Bitcoin held by short-term investors, particularly following substantial sell-offs. This reduction in selling pressure presents opportunities for accumulation and could potentially indicate a price bottom, signaling a potential buying opportunity.

The analyst pointed out that when short-term investors sell off their cryptocurrencies, they might be passed on to more robust investors, potentially leading to a more stable market.

Bitcoin has been seeing new whales ‘fiercely’ add BTC to their holdings amid an accumulation trend that the market “has never seen,” as whales that have entered the market during the latest bull run keep looking for profit.

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2024-10-11 01:35