Bitcoin investment expert who made $20.1 million in profit in 30 days says Bitcoin price has not yet bottomed out

Bitcoin has performed surprisingly well since its $3,800 bottom, rallying to highs of $7,100 this weekend alone, a 87% rally. Altcoins are following closely behind, posting similar gains to the cryptocurrency market leader.

Despite this convincing rally that has spent several days consolidating in the $6,000 region and establishing a crucial support level at $6,000, one prominent cryptocurrency analyst is not convinced that Bitcoin is ready to move higher. Here’s why.

Cryptocurrency market has not yet fully bottomed out

Over the past few months, the analyst and Bitcoin trader who goes by the username J0e007 (Joe) has become one of the most prominent members of the Bitcoin trading community, reaping insane profits on a monthly basis.

Bitfinex leaderboard data shows the trader has made $20.1 million in realized Bitcoin trading profits in the past 30 days, which made him tens of millions of dollars a few months ago. So it’s no surprise that when he speaks out, people listen.

On March 25, Joe warned that expectations that Bitcoin had fully bottomed and would enter a bull run were unfounded, explaining that “a V-shaped bottom recovery within a week of the ‘dip’ would be a new price pattern never seen before in Bitcoin.”

He tweeted: “A V-shaped bottom resuming an uptrend above $3,000 within a week of the “crash” would be a new price pattern never seen before in Bitcoin. This time it’s different!” In a later message, he further emphasized the idea that a bottom hasn’t quite formed yet, writing in a sarcastic tweet, “There’s nothing to worry about at all.”

His skepticism about the cryptocurrency market’s recovery is justified. Yesterday we saw a 16% increase in the Bitcoin blockchain’s network difficulty, as a large number of miners shut down their machines.

At every bottom in the Bitcoin market there has been a downward mining difficulty adjustment followed by months of accumulation near the bottom before resuming the bull trend, rather than the immediate rally we have seen in the cryptocurrency market over the past week.

Another well-known analyst, Nick Chong, predicted: “As much as investors want Bitcoin to take off right now, we are about to see a 16% downward difficulty adjustment. If history repeats itself, we will see a few months of accumulation phase before the next big bull phase arrives.”

The long-term outlook is far from bleak.

While traders claim that a V-shaped bottom is nearly impossible, the consensus among analysts is that even if Bitcoin’s price doesn’t rise, its fundamentals are stronger now than ever before.

According to a previous report by CryptoSlate, an authoritative overseas blockchain vertical media, Chris Burniske, an analyst at Placeholder, a well-known New York venture fund that coined the term "crypto assets," said that the epidemic crisis will only "strengthen" the foundation of cryptocurrencies, highlighting how the crisis "revealed the flaws of the old financial system": "New technologies rise with the collapse of old systems, and it often takes a crisis to fully reveal the flaws of old systems."

The specific scenario he was referring to was the inflationary shocks (and possibly collapse) that fiat currencies were expected to experience in the coming years as a result of unorthodox monetary and fiscal responses to the crisis.

Burniske’s sentiments were echoed by former Goldman Sachs executive Raoul Pal, who recently was unable to “express how bullish (he) is on Bitcoin,” arguing bluntly that the crisis would ensure that “all trust” in the “entire financial system” disappears into thin air.