Bitcoin to Pause and Recharge: Florian Grummes Predicts a Brief Respite before the Next Bull Run

In the coming weeks, Bitcoin (BTC) “will take a breather” between $35,000 and $38,000, prices that will serve for its launch towards the area between $48,000 and $50,000, according to estimates by technical analyst Florian Grummes.

In Grummes’ view, the next plausible target price would be $48,555. However, if Bitcoin fails to achieve this and experiences a larger pullback, “an established top and a more significant correction below $31,800 would have to be considered,” he warns in a recent report.

However, he believes that the current enthusiasm surrounding spot Bitcoin exchange-traded funds (ETFs) should be taken into account, which allows one to think of a larger rally, specialist argues.

Several analysts and companies believe ETFs have a high likelihood of being approved in the United States, which has served as a catalyst for BTC to reach $38,000 in recent weeks, its highest since May 2022.

Read more about Bitcoin and what Florian Grummes thinks about a possible bull run, and find the latest financial news of the day with the Born2Invest mobile app.

Grummes considers a rise in BTC beyond $50,000 in the next six to 12 months “highly unlikely”

The performance of Bitcoin “remains significantly ahead on a year-over-year basis,” with a gain of 119%, achieving better performance than other cryptocurrencies such as ether (ETH) which has experienced a 61% increase.

In the case of another cryptocurrency such as Solana (SOL), Grummes suggests that its 107% increase in the last four weeks, serves as an “emancipatory blow”, for the market. In fact, there are asset management firms that estimate SOL has the potential to be worth four figures in the next 7 years, as reported by CryptoNews.

That, coupled with a possible BTC price at $50,000, will allow for a “brief but strong price explosion in smaller altcoins,” completing the list of ingredients for “significant interim leadership in the sector.”

With respect to stock indices S&P500 and German DAX lag far behind Bitcoin with 18% and 12%

On the other hand, the analyst considers the performance of precious metals “comparatively disappointing”. Gold achieved a record gain of 7% since the beginning of the year, while silver, on the other hand, has fallen into negative territory with -1%, over the same period.

This can be seen in the chart, which shows the performance of BTC, altcoins, S&P500, DAX, gold, and silver so far this year.

When Bitcoin’s recovery is contrasted with equity markets and precious metals, the digital currency “eclipses” all other sectors, proving “clear and spectacular.”

Overall, the recovery of Bitcoin and altcoins, along with equity markets, is likely to persist through the end of the year. However, Grummes expects the dynamics to reorganize in the first weeks of January, which will present investors in these sectors with a challenging 2024 outlook.

Regarding Bitcoin’s seasonality (BTC price tendency to rise or fall at certain periods of the year), Grummes states that it remains bullish until the beginning of January. Subsequently, and statistically speaking, he expects a period of “consolidation or correction of several months towards the spring (in the northern hemisphere) of 2024.”

In short, seasonality remains bullish until early January. All this shows that Bitcoin is alive, but there is still a long way to go before it returns to its all-time high of $69,000, reached two years ago.

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(Featured image by WorldSpectrum via Pixabay)

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