Bitcoin Hits First Real Resistance After PUMPING 45% This Quarter | Gary Cardone

Bitcoin has encountered its first significant resistance at approximately $88,000 following a remarkable 45% surge this quarter. Analysts are optimistic, with predictions suggesting Bitcoin could soon surpass $90,000. Morgan Stanley has reported a historic inflow of $61.7 million into its spot Bitcoin ETF, with no recorded outflows, reflecting robust investor interest.

For the first time since January, the average Bitcoin ETF holder is back in profit. Gary Cardone highlighted a shift in market dynamics, noting that Wall Street is increasingly influencing Bitcoin trading. He mentioned that 600,000 Bitcoin need to return to the market and revealed that he has personally acquired 12 Bitcoin, adhering to a long-term holding strategy.

Cardone indicated that the summer marked a pivotal change in the Bitcoin landscape, suggesting that the original contributors to Bitcoin's rise may not be the ones to drive its future growth. He pointed out that genuine buyers are waiting for price dips to make investments, despite facing accusations of being liquidated multiple times over the past six years.

The discussion surrounding Michael Saylor's potential liquidation has been characterized as exaggerated by Cardone, who believes Bitcoin will outperform broader markets, albeit at a more modest rate of 1.75 to 1 or 1.95 to 1 over the next three to five years. He cautioned that after a 40% price increase, there is a 90% likelihood that Bitcoin will retrace to $75, rather than ascend to $95.

Cardone anticipates that Bitcoin's liquidity as collateral will draw more users into financial transactions, predicting that it will become a more commonly owned asset in traditional finance over time. He emphasized the significance of entry price in asset investment, as it greatly influences the ease of exit.

In discussing Bitcoin's current state, Cardone reiterated its 45% increase this quarter but acknowledged the resistance it now faces. He compared Bitcoin to gold, projecting that it could reach $4,500. He also noted the volatility in related markets, suggesting that while arbitrage opportunities exist, volatility remains unpredictable.

Cardone expressed skepticism about shorting the U.S. economy, implying that such a move would signal a global crisis. He observed that other nations are investing in their economies while the U.S. has not, predicting that Trump's influence could spur investments in new ventures, ultimately benefiting the economy. He suggested that the U.S. might consider taking stakes in companies to enhance global competitiveness, proposing that buying Bitcoin could serve as a more appealing diversification strategy.

Regarding market behavior, Cardone advised against chasing Bitcoin prices, stating he is looking for a $17,000 pullback before making any purchases. He believes a 50% retracement followed by a bounce would indicate a stronger market bottom. Cardone predicts Bitcoin could reach $75,000 before approaching $81,000, although he does not foresee a violent retracement. He noted a shift in market sentiment, indicating that long-term holders are less sensitive to price fluctuations compared to recent sellers.

In conclusion, Cardone posited that even a small percentage of the stock market's daily volume redirected into Bitcoin could significantly influence its price, suggesting that a literal bid floor exists at just over 1% of average daily volume.