Around the world, cryptocurrency enthusiasts are starting to regain hope after seeing a spike in the price of Bitcoin, which had been met with bearish resistance lately. But, since the beginning of the month, Bitcoin’s rising value has ceased to climb and has given way to a bear market once again. In turn, dropping to price of Bitcoin down as about $9,000.
It seems that Bitcoin can’t get across the $12,000 mark and has fallen into another downtrend.
As of February 20th, Bitcoin has reached a value of $11,767. But then, during the same day, dipped down to $11,233.
Therefore, the rising price of Bitcoin, which started its ascent from $5,947 on February 6th, may have been simply a glimmer of hope in the face of a bear market, and not an escape from the crash.
Even though this article is not intended to spread the FUD, it would still be wise to follow the advice of Vitalik Buterin who warns, “Cryptocurrencies are still a new form of financial asset. They are extremely volatile on the markets and can drop down to $0 at any time. Never invest any more money than what you can afford to lose.”
Could This Be the Return of a Bull Market?
As far as hope is concerned, the instability of cryptocurrencies since the start of 2018 should be reason enough for investors and cryptocurrency enthusiasts to fear the worst. This fear has struck a chord with Craig Erlam, an analyst for the Oanda Corporation, who says: “Emotions remain fragile around cryptocurrency and I’m not convinced that investors have fully recovered from the crash at the beginning of the year.”
Still, there has been some encouraging signs when we closely examine the short-term evolution of Bitcoin. Its price has now rebounded twice from the same point of resistance.
To finally break this threshold. What a great release for the Holders.
Shown above in green, we can see where Bitcoin took a 38% hit in less than five days. Now, Bitcoin should continue climb. Experts believe Bitcoin should bottom out by March and then, by June, should be shooting for the stars.
According to this cyclical approach, Bitcoin’s extremes are always separated by a similar amount of time and every 3 months, its price should reach a new “bottom”. Following this cycle, the month of March should be Bitcoin’s next bottom and then, it should peak again sometime in June.
Julian Hosp, another big name in the world of cryptocurrency, had predicted the crash and expected to see Bitcoin at $5,000. However, he also predicted to see Bitcoin at $60,000 in 2018…
If Hosp’s predictions turn out to be right, 2018 could see Bitcoin at $30,000 by June and then $60,000 by the end of the year