Dan Morehead, CEO of Pantera Capital, stated that bitcoin’s recent market performance suggest a new period of growth.
He emphasized that issuing this kind of recommendation is quite rare for his company:
“For those who are new to Pantera who might think a fund manager like Pantera would always be saying ‘Today’s a great day to get long.’ we’ve only made four cryptocurrency trade recommendations in seven years: three buy recommendations and one sell/it’s-going-to-go-sideways-for-a-while.”
The optimistic prediction is based on the analysis market indicators. According to Morehead, bitcoin “hit that rare buy signal” by descending lower than its 200 days moving average.
According to the textbook theory, very low readings of this indicator suggest that the market is approaching the bottom and a reversal of trend is expected. This is, in fact, only the fourth trade recommendation issued by the company in seven years, so it seems that the company is quite confident in its prediction.
Pantera Capital didn’t provide any trading advice on altcoins but admitted holding a diverse portfolio of digital assets.