Bobby Lee, one of the early Bitcoin investors, is still bullish for cryptocurrencies despite the current decline. The master investor also shared a date he expected about when the bear market will end.
Factors triggering Bitcoin and Ethereum to peak, according to Bobby Lee
Lee’s market analysis came from an interview with Bloomberg. The senior investor says that if the predictions for Bitcoin and Ethereum’s hard crypto winter don’t come true, they will easily bounce back to their November ATH prices as soon as possible. According to Lee, Ethereum supports expectations for a merge upgrade planned for September. With Merge, the Ethereum network will switch from the PoW consensus system to the PoS consensus mechanism. In part of the interview, Lee commented on the state of the market in recent months before expressing his expectations for the merge:
I have high hopes for bitcoin and cryptocurrencies. Simply put, I believe I was worried about cost when I joined the program earlier. There has been a temporary adjustment in pricing. And compared to that time, Bitcoin and Ethereum have both increased in price by more than 20%. And I think it’s a bear market call that might be premature. We’ll wait and see.
An Ethereum merge is the point at which the network plans to leave PoW and move to PoS. It sounds like a simple task, but it will take some serious technological push. The developers are calling the new network “Ethereum 2.0”. This transition is a reminder to upgrade from Web1 to Web2, as Ethereum developers have always been aware of the limitations of using PoW. At the same time, most of the blockchain industry still uses the PoW mechanism. Merge will be completed around September 15. That’s why, to Lee, this date is critical for the cryptocurrency market:
With Ethereum’s upcoming upgrade, you can easily see Bitcoin and Ethereum returning to their previous highs if the bear market doesn’t happen. This is very important for the Bitcoin ecosystem. Everyone is looking forward to it. On the other hand, if there is a bear market, I believe it will only last for a short time – one to two years. And this is just laying the groundwork for an important new mega rally in the years to come.
cryptocoin.comAs you follow, the Ethereum team shared that the merge could diverge for up to 1 week.
BTC price analysis
Bitcoin price is stuck consolidating inside an ascending parallel channel fractal with no signs of a breakout. Things have remained more or less the same since the last weekly forecast. However, with a significant addition, BTC tried to break the 50% retracement level at $24,948 but failed.
FXStreet analyst Akash Girimath highlights two scenarios in his current technical analysis.
- Rally towards $29,000. This scenario is developing well with the recent bullish outlook due to the Ethereum merge. However, to be productive, Bitcoin bulls need to turn the $25,000 level into a support base.
- The second scenario will develop around $22,900. In such a case, BTC is likely to retest the highest trading volume level at $21,155. This barrier is called a checkpoint. It is also derived from price data to date from the last break of the ascending channel on June 10.
