Charting Expert Says that Bitcoin Would Take Longer to Recover from the Bear Market
The cryptocurrency market is in a bear trend since the beginning of the year that has hardly affected participants in the community. Back in December, Bitcoin was traded close to $20,000 and just some months ago, it reached $5,800 dollars.
According to a charting expert known as Rob Sluymer, Bitcoin has suffered a lot in the last months due to this bear market. Sluymer says that the technical damage done to Bitcoin during this year will take several months to be repaired. That means Bitcoin and cryptocurrencies are not ready to rebound yet.
In the last weeks, Bitcoin and altcoins showed great stability and some cryptocurrencies such as XRP experienced substantial gains. However, this expert says that it is not time yet to start getting too hopeful about the future of virtual currencies.
Rob Sluymer works at Fundstrat Global Advisors as an analyst. He released a note to clients in which he explains that although the market is experiencing a positive sentiment, it will take a longer time for cryptocurrencies to experience a new bull run.
About it, he mentioned:
“Given the technical damage that has developed in 2018, we expect most cryptocurrencies will likely require months of repair before a new bullish trend can develop. This is consistent with post-bear-market behaviour that has developed in other asset classes following bear markets.”
At the same time, he said that if Bitcoin is able to break of the $7,400 dollars resistance that was formed in September that would be a very bullish sign. However, it would be very difficult to predict what would happen if this level is broken.
Experts have different opinions about what will happen with Bitcoin and virtual currencies in the future. There are other analysts that are very bullish about the short and middle term. Naeem Aslam, for example, an analyst that works at Think Masters in the United Kingdom, said that the last price action experienced by Bitcoin reminded him what happened during September 2017. Some months later, Bitcoin reached $20,000 dollars.
If a bull market is gaining momentum, users that registered heavy losses during this year would be benefiting from it. In the coming months, according to Aslam, Bitcoin could reach new records.
Nonetheless, it does not mean that investors should start to move their funds into virtual currencies. Everyone interested in the market should understand that it is a very volatile market. Bitcoin could skyrocket but it can also reach new lows this year.
Furthermore, there are several institutions that would start to place their funds in the virtual currency market. If the Intercontinental Exchange (ICE) launches the Bakkt platform, wealthy investors could start to place their funds in the virtual currency market in the coming months.
Clearly, it was a very hard year for Bitcoin and other cryptocurrencies. However, there is still time for a new bull run or at least, a moderated recovery that would place Bitcoin between $7,500 and $10,000 dollars.