Scott Bauer, the CEO of professional trading platform Prosper Training Academy has said following the recent Bitcoin price correction whales are taking advantage by accumulating more of the asset partly contributing to the volatility experienced.
Speaking to the TD Ameritrade Network, Bauer noted that Bitcoin’s price is stuck in the current range for a long time giving whales an opportunity to accumulate.
He suggested that unless Bitcoin breaks the $42,000 barrier towards the $36,000 mark, whales will still have the upper hand.
According to Bauer, the drop in Bitcoin presented an opportunity for inventors with risky assets to accumulate, taking advantage of the 24/7 availability of cryptocurrency markets.
He notes that crypto markets presented the perfect investment opportunity after the stock market sold off on Sunday going into Monday when Bitcoin plunged by almost 10%.
“Bitcoin has been stuck in a range. It happens to be at the very low end of this range. Now it has been stuck in a range for quite some time now and until we really break through the $42,000 and change level. But until we, we really break that $42,000 and get down to maybe the $36,000 or $37,000 level, I think the bulls still have the upper hand,” said Bauer.
Awaiting the Fed’s next direction
Furthermore, Bauer indicated that, like the stock market, Bitcoin might be awaiting the next announcement by the Federal Reserve on interest rates.
He suggests that most investors might be on the sidelines until the Fed’s next direction before deciding to buy Bitcoin. Bauer notes that investors will opt to await the Fed’s next direction, although the correlation between cryptocurrencies, interest rates, and the dollar remains unclear.
His sentiments come after Bitcoin’s volatility accelerated on Monday, considering that the asset was building a new momentum to another record price. Bitcoin traded above the $50,000 mark early this month, which was considered a critical physiological point.