New Bitcoin Price Chart Shows All the Elements of a Bottom, Explains Crypto Analyst
Bitcoin bottom has been the topic of discussion ever since the leading cryptocurrency dropped down from its peak of about $20,000 in December 2017 and to the lowest yearly point of 2018 in December at about $3,200.
Some analysts have already called the bottom in while others are betting for a bottom at around $1,160 level.
According to crypto analyst and economist, Alex Kruger, the current Bitcoin chart has all the components of a bottom. Capitulation is the first factor that already occurred in November and December followed by the second one that is bouncing off the long term trend measure, twice that registered in December and February. The last factor is breaking out from the higher low in high volume that is currently happening in the Bitcoin market.
Short term longs above 3550, 3700 key level below (buy), 4200 key level above. Charts scream bottom, yet regardless of any bullish developments, interest in the space is still minimal. If price turns south of 3550 a new low becomes likely. The future is path dependent.
— Alex Krüger (@krugermacro) February 20, 2019
At $4,200, Bitcoin Price Will Move “Fast”
In the short term, Bitcoin price can be expected in the $3,700 to $4,200 range, however, if price breaks above $4,200, it would move “fast” from here.
Though once the market starts moving the positive or negative factors doesn't make much of a difference, still the market is seeing a lot of development in the form of upcoming technical updates viz. Taproot, Schnorr, and Mast on Bitcoin network, Lightning Network is seeing exponential growth, upcoming Fidelity and Bakkt launch, and Mt Gox rebirth among many others that point towards a healthy and growing market.
“Prices may crash again. After all, bitcoin's demand is almost entirely speculative, and natural sellers (miners, exchanges) will always sell.”
However, the concerning factors for trading volume to keep the prices up is that the retail interest is “gone for now,” and in order to have a sustained upward trend, Bitcoin requires public interest, which given the level of tweets are at the 2016 lows and google trends that are at April 2017 low, it hasn’t come back yet.
“Short term longs above 3550, 3700 key level below (buy), 4200 key level above. Charts scream bottom, yet regardless of any bullish developments, interest in the space is still minimal. If price turns south of 3550 a new low becomes likely. The future is path dependent.”
Unlike Alex Kruger, hedge fund manager, Alex Sunnarborg of Tetras Capital says, Bitcoin hasn’t hit the bottom yet.
“I don’t think so, and I think calling that is very difficult […] One way to think about the bottom is that it happens when all the bad news gets washed out. At that point, the only thing to do is go up, and you can’t really talk about any negative catalysts anymore, because they’ve all happened.”
He further talked on the matter of price manipulation and that crypto data needs to become more reliable. For this, he wants SEC to come down “hard” on people as crypto space has various bad actors and many were related to ICOs.