Gareth Soloway, chief market strategist at verifiedinvesting.com, predicted that Bitcoin price could return to the $15,000 level. The co-founder of Glassnode, Negentropic, draws connections between the increase in liquidity in the cryptocurrency market and China’s efforts to stabilize its own markets.
Market strategist Gareth Soloway has published his own prediction for the price of Bitcoin, saying that it could reach $15,000 in the event of a significant sell-off in the stock market.
Glassnode co-founder “Negentropic,” recognized by his X nickname, recently shared insights on the current state of Bitcoin price via a tweet. Negentropic revealed that Bitcoin’s rise above $42,200 created a large liquidity pool for long positions, indicating “neutral momentum.”
Soloway Says $15,000 in Case of Significant Stock Market Selloff
Soloway responded to an interview, delving into the latest bitcoin trends and its possible future trajectory. Among several things, the Bitcoin bull market and major events were highlighted respectively in 2017 with the introduction of regulated bitcoin futures and in 2021 with the Coinbase initial public offering (IPO).
Coming to the current moment, Soloway sees the Bitcoin optimism alongside the significant event of the approval of Bitcoin spot ETFs in the US.
Specifically, the strategist outlined the exits from Grayscale Bitcoin Trust (GBTC). In this sense, Soloway said that the significant discount at which GBTC is trading is a kind of added advantage for investors.
However, despite this, Soloway stated in his prediction a possible drop in the price of Bitcoin and bearish sentiment.
Bitcoin Price Forecast Bearish and Falls to $15,000
The market strategist said his biggest concern is a bearish view of BTC. This situation could occur whether you see a rally in the S&P market or a reduction in risk in the broader markets.
Soloway is not the only one seeing a downward trend. Recently, Deutsche Bank analyst research report highlighted the bearish sentiment right now stating that the Bitcoin price prediction could fall below $20,000 within a year.
Deutsche Bank’s forecast is the result of a retail cryptocurrency market sentiment survey, which involved 2,000 people across the US, UK and Eurozone. Therefore, out of 2,000 people, more than a third of the sample interviewed believes that BTC will reach a price below $20,000.
Negentropic: “Liquidity is Key”
On January 29, Negentropic posted the following on X:
“1. Bitcoin Analysis: Bitcoin surged to $42.2k, providing liquidity for long positions, with a neutral impulse.
2. Liquidity Gap: The price is moving to fill the liquidity gap above $42k, indicating potential volatility. Approximately $659 million in liquidations occurred.
Outlook: Bullish momentum could trigger $1 billion in short position liquidations, potentially propelling the market upward.”
Meanwhile, this move suggests that Bitcoin is aiming to close the liquidity gap beyond $42,000, which could lead to higher volatility and change market sentiment.
There have been $659 million in liquidations so far, Negentropic believes that because things are going well for Bitcoin, many people could decide to sell their bets against it, possibly reaching $1 billion in short positions.
However, this optimism aligns with reducing selling pressure from investors in the Grayscale Bitcoin Trust (GBTC).
Analysts’ Positive Perspectives
Bullish sentiments continue to prevail. Analysts like Jelle see promise for Bitcoin to reclaim the $42,000 level, suggesting it could be “time to focus on long positions once again.”
Michael van de Poppe goes a step further and suggests that the recent correction could be a thing of the past.
As of now, Bitcoin is trading at $43,466, reflecting an 8.9% increase over the past week. Despite this positive move, the daily trading volume has decreased from $26 billion to $14 billion, indicating a cautious sentiment among investors.
By Audy Castaneda
