US-based spot Bitcoin ETFs are on a five-day losing streak with approximately $1.17 billion withdrawn recently, marking the longest outflow run in over four months. Despite this, crypto expert Anthony Pompliano suggests that Bitcoin (BTC) might currently be oversold, indicating a potential buying opportunity.
Data from Farside and CoinMarketCap report that these outflows are the most extended since a seven-day period in April when Bitcoin traded near $79,625. As of now, Bitcoin is priced around $112,870.
Pompliano shared on CNBC that the recent dips signal undervaluation for Bitcoin. He highlighted the approaching fall months after the April 2024 halving, which historically align with increased market activity and price appreciation.
He mentioned that investors tend to become more active in September and October, contrasting with the quieter August period. This seasonal trend, along with oversold indicators, points to a likely uptick in Bitcoin’s price.
Notably, Bitcoin hit a new all-time high of $124,128 on August 14, just over a week ago. Historically, Q3 is Bitcoin’s weakest quarter with an average return of 6.02%, while Q4 has seen a strong average gain of 85.42%, according to CoinGlass.
Pompliano also expressed skepticism towards a $1 million Bitcoin price within this cycle, though he acknowledged it could happen in the future. He suggests anticipation of the US Federal Reserve’s rate cut on September 17 and increased purchases from treasury firms may drive demand higher.
Overall, Pompliano advises that the belief in historical patterns can fuel buyer activity, particularly leading into the final quarter of the year.
