TD Ameritrade believes this could happen next with Bitcoin

When the market is constantly swinging up and down, and the ups are not that high while downs are going intense every month, several market experts are sharing their views on the matter. According to a report by Bloomberg, the emerging trends indicate that the Bitcoin price has found a cyclical bottom.

Since the battered cryptocurrency appears to have lost pace as the market prepared for the Fed’s decision later this week, many saw the recent relief rally as a dead-cat bounce during the market downturn. Bitcoin’s performance will be heavily influenced by the Fed’s upcoming decision, which will also have an impact on U.S. tech companies. A 100 basis point interest rate hike is anticipated to result in a worsened selloff in the cryptocurrency market.

What TD Ameritrade has to say about the Bitcoin trend?

After the historic chaos devastated more than 70% of the crypto market capitalization in the last few months, industry analysts thought it would take some time for investors’ confidence to return to the market. According to Shawn Cruz, head trading strategist at TD Ameritrade, the reason for Bitcoin’s strong comeback is due to a change in investors’ “risk appetite” when they continue taking on more risk. If not, the asset is likely to stay at its current value.

Although he would not completely rule out the possibility of retesting the $19,000 zone, managing director of Ninepoint Partners’ Digital Asset Group Alex Tapscott believes that the bottom had already been reached. He stated:

“The risk-reward for Bitcoin is skewed heavily to the upside. For the long-term investor, this is a rare and tantalizing entry point.”

In contrast to the evaluation, the crypto analytics company Glassnode previously predicted that “genuine bottom formation could be underway” since too much leverage had been removed from the market over the previous two months. The market value to realized value (MVRV) statistic for bitcoin, which measures when a cryptocurrency is over or undervalued in relation to its “fair value,” is currently at 1.02, bouncing back from 0.8 on June 19.

However, comparatively, December 2018’s BTC cyclical bottom saw the metric sitting at 0.68 at one point.

Notably, as TheCoinRise reported, Tesla dumped 75% of its Bitcoin holding, worth around $936 million, a few days back.