Fundstrat Global Advisors: Bitcoin Recovery Will Take Weeks if Not Months Before Multi-Month Rally
Today you will not read that Bitcoin will be worth $50,000 USD in December or something like that. The reality of the bear market is, indeed, a lot direr than most crypto evangelists have predicted.
Shares of many different crypto-related companies in the Asian markets sank today, November 15, as Bitcoin has reached its one-year low after a sell-off. Monex Group Inc, which owns Coincheck, a Japanese digital crypto exchange (which was hacked at the beginning of 2018) and SBI Holdings lost more than 2 percent today and are close to their two-week lows in Tokyo.
Companies like Vidente Co. and Omnitel Inc. have also been affected and are down at least 7 percent today, as well as many other crypto-linked stocks. The situation is actually worse in the U. S. Ideanomics Inc., a blockchain-related stock, has plunged 49 percent in a single day. That did not happen since 2010 and it marked one of the worst days in the history of the company.
Unfortunately, even Bitcoin took the plunge. The token, which basically prompted the whole market down the abyss today, fell from the 6,000 USD mark which acted as its floor for a long time. The bad news made Bitcoin plunge to $5,571 USD today.
Part of the reason why this is happening is that the industry is very cautious as the Bitcoin Cash (BCH) split is set to cause some dire trouble in the industry now. BCH dropped 17 percent yesterday, while it rose 3.1 percent today.
One of the only companies that broke the downtrend was Ceres Inc. The company rose 8.2 percent today after reporting its nine-month earnings, which were up.
$6,000 USD Was The Floor
The market is very worried right now because the $6,000 USD mark acted as the floor of Bitcoin for a long time. According to Soichiro Tsutsumi, a trader from eWarrant Japan Securities K. K. in Tokyo, this feels like a very dangerous direction for Bitcoin to move in.
With the Bitcoin price down and going into the “deeply oversold” territory, most people in the market are starting to get cautious about the future. The week has brought a significant damage for the market.
One of the reasons why the price is down now might be because miners might be stopping to mine Bitcoin in order to mine Bitcoin Cash as they believe that they can actually gain something when the hard fork happens.
Fundstrat Analyst Sees a Bad Future
Unfortunately, Rob Sluymer, from Fundstrat, sees a very dire future for Bitcoin after this harsh collapse. He sees Bitcoin as deeply oversold now and also affirms that the technical indicators are really not favorable for a comeback so soon.
While he believes that the bull market will be back someday, he also affirms that it will take weeks if not months to recover from the significant damage that the market had today.
Bitcoin has dipped below $5,600 USD for the first time since October 2018 now. This is significant because it is the one-year low so far.
However, Fundtrat’s head, Tom Lee, disagrees on the other analyst. He sees the price of Bitcoin rallying at $22,000 to $25,000 USD at the end of the year and he is confident that the market will recover.
Is this the death of Bitcoin? Not really. Bitcoin has been “dead” for many times since it was first launched in 2008 and it always comes back from the “dead”.
However, when even Michael Novogratz from the Galaxy Digital, a famous Bitcoin bull, diminished his price predictions to $9,000 USD at the end of the year instead of the $20,000 USD or more that he was claiming before, you can be pretty much sure that the market is facing some bad days.
Let’s all wait ‘til the bear market ends and the next rally begins because it always does, it may just take a few months.