- CNBC call for a 17% upside in bitcoin price
- A wave of investors driven by FOMO will enter when we break into a new high
- Bitcoin's investment flow presently growing an order of magnitude (10x) every 4 years – on-chain analyst
Bitcoin price is still hovering around $10,250, not continuing the momentum but not sliding down either.
However, with CNBC making a call for a bitcoin boom, it might be time to get ready for a drop as CNBC’s call for bitcoin works as a reverse indicator.
Bad news everyone… https://t.co/anEqd9v3cp
— Alistair Milne (@alistairmilne) February 13, 2020
According to the mainstream media outlet, despite bitcoin’s pull back above $10,000, the rally is far from over. MKM Partners chief market technician JC O’Hara told CNBC on Wednesday,
“When we look at cryptos as a whole, they tend to trade in two distinct phases. The first being dormant consolidation, which is followed by phase two, which is a high-momentum phase.”
“When you look at bitcoin we’re starting to see signs that the dormant consolidation from the second half of last year is slowly starting to change in terms of positive bullish momentum here.”
CNBC: A 17% Upside Coming
On a year-to-date basis, the world’s leading cryptocurrency has surged over 38% after finding a bottom in December. Ever since then, bitcoin has been on a steady rise. O’Hara said,
“We broke out of the downward sloping trend channel. We’re breaking above the $10,000 psychological level, and we’re of the opinion that positive momentum will continue to follow positive momentum. So that’s why we think in the short term we could see $12,000 on bitcoin.”
Currently, bitcoin is trading at $10,250 and a move to $12,000 would imply an upside of 17% from the current levels. Back in July, last year bitcoin briefly topped at $13,900 but we have yet to break into an all-time high.
Open field above $20,000
Bitcoin, the best performing asset of the decade with an upside of nine million percent would pull in another wave of investors driven by FOMO when we break into a new high, according to Jake Chervinsky, Counsel at Compound Finance.
I first heard about bitcoin in 2013, but didn't bother looking into it until 2017 when I saw an article about a new all-time high ($3,000).
Many others have the same story. Like it or not, all-time highs convert more nocoiners than anything else.
The bull market starts at $20k.
— Jake Chervinsky (@jchervinsky) February 12, 2020
Bitcoin remains a speculative asset for the newbies, he said while sharing his first foray into bitcoin which was after the flagship cryptocurrency made an ATH during the bull market of 2017 at $3k despite having heard of it in 2015. And this is why the bull market will start at $20,000. Vijay Boyapati said,
“Once the prior all time high is breached, there is no longer an overhang of supply. The price is free to run wild in an “open field”. This is when Bitcoin's price appreciation begins to accelerate apace.”
Bitcoin making new all-time highs, Boyapati explained last June, will trigger a “feeding frenzy,” that will see media attention returning and new entrants attracted by the “allure of quick profits” which in turn even drive prices higher even faster. And that’s when the price will “eventually reach a crescendo top.”
Still too early to be an alternative to traditional stocks?
Mark Tepper, president of Strategic Wealth Partners, is also dipping a toe into bitcoin as he shared with CNBC,
“Overall, we’re seeing investors just continue to diversify away from traditional stocks and bonds towards alternatives. Bitcoin could fit into that alternative sleeve, but I still think it’s a little too early.”
Tepper holds bitcoin but hasn't become a believer yet because according to him, it is “not an investment just yet still a speculative play.
However, on-chain analyst Willy Woo noted, in 2019 Visa processed $8.8T through their network while Bitcoin processed $727b meaning Visa accounts for 10% world GDP (payments) and Bitcoin 1%. Analyst Woo said,
“Bitcoin's investment flow (aka annual investment velocity) is presently growing an order of magnitude (10x) every 4 years.”