BTC Accumulation Pattern Likely to Continue as Top Traders Share Their Bitcoin Predictions
Buying while prices are low is the ideal. Regardless of the recent BTC price spike, it is still 75% away from it's all-time high. The current market situation can likely be explained considering prior periods of accumulation.
In 2014 and 2015, Bitcoin (BTC) went through a big boom and bust event, BTC had a similar price drop at the time, and was written off by critics and the media. BTC fell to $200 from $1,130, and replicated events of 2008.
That bear season followed with 216 days (January- August 2015) of the accumulation period. After this period was followed by a 9990% increase through 2016 – 2017, reaching its December all-time-high.
We could be about half way into this accumulation phase as represented in this weeks charts.
Things will likely remain sideways till July, when there will be increased activity, if this pattern is retained.
Bitcoin bought at 5000 USD may not seem as attractive as buying at 3600 USD, but with a more likely chance of rising than falling, it becomes a more promising (short term) investment.
Many Bitcoin investors would likely not hit the assets lowest point, on December 15 when it dropped to 3200 USD.
Bitcoin's Bullish Momentum
Thomas Lee of Fundstrat, indicated that the digital asset will have a more bullish move since it has an over 200 day moving average for the first time in over a year.
Crypto analysts speculate that this is a sign of the end of a very long winter in the cryptosphere as seen in this week's trend.
Lee Tweeted :
Definitely, a positive development that #Bitcoin is now above its 200D mov. avg.
–Many consider P>200D as sign of $BTC in positive trend
–BTC acts significantly better P>200D, a win-ratio of 80% vs 36% when P<200D”
Another Interesting Bitcoin stat is that the asset generates its entire performance within a 10day period each year, and one of them was on the 2nd of April.
Experienced crypto traders know that any effort to time the market is a waste, most especially with digital currency, which is very volatile.
This week the crypto bull made another prediction when he was on CNBC, stating that BTC’s fair value at the moment is 14,000 USD which was got from the multiplication of the mining cost by 3.
Bitcoin retains it's gains three days after the hike, and new resistance and support levels are being made. BTC peaked at 5300 USD but has balanced at about 5000 USD around the last 24 hours. Many crypto analysts have speculated that BTC will still rise to 6000 USD in the next couple of weeks.