2018-11-16 02:32 |
Bitcoin’s Stable Prices – Possible Calm Before A Huge Breakout?
Bitcoin’s prices have finally stabilized after a tumultuous and volatile 2017. Right now, the crypto trades for between $6,000 and $6750. 2017 saw bitcoin’s price rise to unprecedented heights, closing out at its highest ever price of $20k+ per BTC early year.
This erstwhile rabid pace has drastically slowed down now, with the prices crashing and remaining somewhat stable in recent times. Of course, this non-movement has had many investors stumped and discouraged by the current state of the market.
While some people are of the opinion that the coin has reached its optimum price, thus the market isn’t going to change anytime soon, there are quite a few experts who believe that this lack of price movement indicates an impending breakout in the coming year.
The Possibility Of An Upward Market TrendsWhile bitcoin’s performance hasn’t been impressive for investors this year, 2019 and the subsequent years look very promising, with experts predicting significant increases in value.
According to Albright Investment Group’s founder, Victor Dergunov, bitcoin’s price will grow “substantially higher over the next several years”. In his post on Seeking Alpha, he said,
“However, this is not the first time that such a phenomenon has been observed. In fact, Bitcoin often quiets down when interest evaporates, volume declines, and sentiment dries up. This typically occurs towards the end of a Bitcoin bear market. So, what will be the spark capable of igniting the next bull stampede in Bitcoin? There are various factors, but the introduction of multiple Bitcoin ETFs, increased institutional interest and investment, coupled with continuously improving functionality are at the top of my list.”
This is predicated on his belief and evidence that similar scenarios have played out in the past, and that what we’re currently seeing is but the near end of the bearish trends that we’ve experienced this year.
Interestingly, Dergunov isn’t alone in this perspective. Other experts have piled on, expressing similar opinions and thoughts.
One of these is Fundstrat Global Advisors’ Rob Sluymer, who just recently stated that we are currently beginning to experience an “incremental ‘Silver Lining'” in the crypto sector. He, along with Tom Lee explained that the current market movements are indicative of the bearish market being on its last legs.
In fact, in a recent interview with CNBC, Tom Lee stated that bitcoin’s new floor price appears to be $6,000, which means the coin should be experiencing an upward price trend in the coming months.
Other experts including Bloomberg’s McGlone have clearly stated the same thing, insinuating that the current state of the market might be the new low, and that the market can’t go anywhere but up after this period.
While the aforementioned individuals are careful with their statements, others are coming right out to say that we just might be on the cusp of a new bullish trend, with many tokens beginning to see slight price gains and less market volatility.
So, even while all of these are largely opinions and indicative of renewed positive market sentiments and growing faith in the sector, it is imperative for retail investors to be careful about basing their investment decisions on these opinions.
With A Bullish Trend Around The Corner, What Will Be The Fallout?While many of these experts have clearly stated what we can expect to start enjoying a bull run soon, there’s no agreement on just where the market is headed or why it will head in any direction.
Early last month, Spencer Bogart, a partner at Blockchain Capital, said that positive investor sentiments and news from institutional investors like the Intercontinental Exchange (NYSE’s parent company), Yale and TD Ameritrade might play a huge role in the uptrend.
Revolut’s CEO, Nikolay Storonsky, believes on the contrary, that retail investors will drive the new bull trend as against the sentiment that institutional investors like Fidelity Digital Asset Services (FDAS) and Bakkt will influence the uptrend.
While these experts and industry analysts may have diverse opinions about the state of the market and its impending future, the reality is that they all agree on one thing: that a bull run is imminent.
We think that it’s a combination of these factors that will complement each other to start driving the market upwards. For instance, we can be sure that the arrival of institutional investors will bolster retail investors’ confidence, resulting in them getting more into the market.
As each of these elements play their part, we can be sure that the combined effect of these factors will contribute making the market profitable for all participants. Whether the investor capital will flow into altcoins or bitcoins still remains to be seen. However, certain entities think that bitcoin will still maintain its dominance in the market.
According to Novogratz, bitcoin should still maintain its market dominance, because institutional investors love the coin and think of it as the better of all other options in the cryptocurrency space.
Other experts and analysts have a different opinion about this, stating that projects like ethereum are likely to get a lot of capital investment from these institutional investors.
Whatever the case, we can expect all investors to choose coins that best appeal to them, even if these tokens are not popular or indicative of a bright future.
With bitcoin closing in on its maximum circulating supply, we’re sure to see some of that investor capital go into alternative coins and crypto projects with incredibly potential.
Meanwhile there’s no doubt that bitcoin is the favored choice among all the cryptocurrencies, and will continue to be for a while. In fact, all altcoin price shifts will be hinged on its increasing value as the market leader. Smart investors therefore, will be paying attention to bitcoin to see how the market performs in the coming months.
Retail investors therefore, would do well to pay close attention to crucial news items in the coming months, including the release of multiple bitcoin ETF release, as they await the crypto market to rally.
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