Can bitcoin reach a new all-time high?

Bitcoin’s performance has been a hot topic lately, with opposing views on its future. While roundtable host Rob Nelson expressed confidence in bitcoin’s potential to reach new highs, John Divine, an OTC trader for digital assets at BlockFills, offered a more cautious analysis. Their discussion sheds light on the various factors that influence bitcoin’s market behavior and what investors can expect in the near term.

“I would be surprised if Bitcoin doesn’t break above $80,000 by the end of the year,” Nelson said, starting the conversation with a confident outlook.

Divine emphasized the psychological aspects that affect the market. He noted that the fear of loss often outweighs the possibility of gain, especially when markets approach all-time highs and then pull back. “Bitcoin clearly got rejected from that low seventies area earlier in the summer,” Divine explained. That rejection triggered selling pressure as investors responded to lower lows and lower highs.

Seasonality also plays a major role in current market behavior. Divine noted that July is a time when many asset managers and investors are on vacation. “The market is driven by short-term price action,” he said, highlighting the absence of the usual asset manager offering that usually supports the market.

A critical technical level for Bitcoin is the $53,000 level, which represents the halfway pullback from the yearly low to the yearly high. Divine emphasized the importance of this level, noting that trading below it could signal further market weakness. He added that if Bitcoin were to fall to $48,000, it could lead to a capitulation event, sending prices to their lowest point of the summer or even the year.

Despite the short-term bearish sentiment, Divine remained bullish on bitcoin’s long-term prospects. “When you focus on the asset class, we’re still in a long-term, positive uptrend,” he said. This broader perspective suggests that bitcoin’s overall trajectory remains bullish despite the current challenges.