The Bitcoin Prophet Who Predicted the Previous Drop Has Issued Another Warning

While the cryptocurrency market celebrated Bitcoin challenging the $75,000 mark, a critical analysis came from Sean Farrell, Head of Digital Asset Strategy at Fundstrat, urging investors to exercise caution.

Evaluating the recent upward momentum in Bitcoin prices, Farrell noted that the rally seen in the market may not be as strong as expected, warning that prices could retreat to the $60,000 level in the near future.

Farrell, participating in the Coinage program, emphasized the lack of fundamental monetary or fiscal support to drive Bitcoin upwards in the short term. According to Farrell, recent price movements are largely based on technical and temporary trends. The analyst stated that a retest of the lower end of the broad range Bitcoin has been stuck in for the past few months is the “most likely scenario.”

When host Zachman asked, “When you say lower limit, do you mean the mid-60,000 level or even below?”, Farrell replied, “Yes, we could see those levels.”

One of the most striking points in Farrell’s analysis was the financial instruments that artificially inflated Bitcoin demand. He stated that the intense demand, particularly before STRC issuances and dividend dates, created a “discounted and uncontrolled” buying wave in the market.

However, predicting that a “gap” will form in the market after this period, Farrell argued that the price could be left without support if these flows, which led to nearly $2 billion worth of Bitcoin purchases last week, cease.

Farrell noted that the geopolitical risk premium is gradually receding from the market and indicators like the VIX (fear index) are nearing their bottom, adding that the macroeconomic picture is also not favorable for Bitcoin in the short term.

*This is not investment advice.