Bruce Ng, an analyst at cryptocurrency rating company Weiss Crypto, made an important assessment as bitcoin dominance increased and altcoins remained stable and the largest cryptocurrency hovered between $30,000 and $31,000. Ng’s comments, which reveal 3 scenarios for Bitcoin in the short term, are as follows:
In recent weeks, Bitcoin has been sideways. For Bitcoin to go this way, it means that the money will move to more risky cryptocurrencies, namely altcoins. This brings a decrease in Bitcoin dominance. But strangely, this did not happen. In fact, dominance took a firm stance last week.
On July 7, 1 billion dollars of open interest disappeared. This caused Bitcoin to fall below $ 30 thousand, albeit for a short time. The price soon recovered. Nevertheless, we see that the number of open positions is still high, even at the highest point since October 2022. Therefore, we are still at a dangerous and unreliable point.
At the moment, I think 3 main scenarios can happen in the short term: First, a decline may come. The $28,000 level will be a support here. In my opinion, this scenario is more likely than the scenario I will write… If such a decrease does not occur, prices will continue to rise. With this rise, which will come from the spot volume, the level of 35 thousand dollars can be seen. Thirdly, we can say that if Bitcoin continues to be sideways, money will begin to move to altcoins. ETH/BTC, that is, the ratio of Ether to Bitcoin price is still below the long-standing trendline… Rumors of adoption of an ETH ETF can rally both ETH/BTC and alts.
At the moment, the Ether ETF is just speculation. However, if giants like BlackRock’s Bitcoin ETF applications are successful, ETH ETFs will also make a significant gain here. As a result, when we look at all scenarios, price action in the short term is insignificant than in the long term.