Crypto analysts have officially jumped the shark – and it only took six months to find themselves in a total reversal of their predictive dialogue.
Remember all the predictions connected to price targets significantly beyond 100k? Those were the conservative numbers at the time. Many analysts predicted Bitcoin would top out (in short order we might add) at 1MM.
Now the pendulum has swung the other way and analysts are competing to call ever lower bottoms in the current bear market.
Various analysts and experts have weighed in on Bitcoin’s current woes, providing their opinions on what the future holds for the first and foremost cryptocurrency.
One such expert is Luis Carranza, the founder of London Fintech Week, who told Express.co.uk that — despite reaching yearly lows — there are still plenty of reasons to remain bullish in the long term. He stated:
“Crypto is unpredictable. There are massive spikes and drops. $4500 could be the bottom, but there is nothing preventing $2500 from being the bottom. Likewise, as crypto becomes more mainstream the price tends to rise. Even if the price drops to $1000 there’s nothing preventing another surge to $14,000.”
For Carranza, the cryptocurrency market’s current woes are mostly the result of necessary growing pains as the industry matures from stupid money to more intelligent money. He noted:
“The challenges for 2018 all involve regulation and the market maturing; with larger sums, crypto is becoming a grown-up game.”
Todd Gordon, founder of TradingAnalysis.com, appeared on CNBC’s Stock Draft on June 22 during which he predicted that Bitcoin (BTC) will fall to $4000 before experiencing a rebound that will take it to over $10,000 by 2019.
Speaking by phone with CNBC’s Tyler Mathisen, Melissa Lee, and Michelle Caruso-Cabrera, Gordon explained that he expects Bitcoin’s price to continue dropping in the short term, shaking off a lot of long positions in the process. He also said that he believes that “technicals will kick in” around the $4,000 mark, essentially driving the price above $10,000 by 2019.
Gordon also noted that this is a “very technical market” and, as such, it is possible to recover certain losses soon by simply accounting for market technicals. He also said that Bitcoin’s price is experiencing one of its lowest high to low ranges, currently at 17 percent:
“There were times when it was 20, 30, 40 percent [per] week so, if I’m down 30 percent right now in Bitcoin, that’s nothing, I can make that up in two weeks.”
Gordon pointed to the substantial market volatility as the main reason for the current decline. However, he also touched on the fact that, historically, the recent correction is “inconsequential”, given the gains Bitcoin saw since 2015, which he cites as a “beautiful uptrend.”
He also stressed that investors shouldn’t look at Bitcoin using linear – or arithmetic – chart, but rather a semi-log approach should be used. While a bit more technical than traditional charts, Gordon explained that semi-log charts not only tend to be more accurate in Bitcoin’s case, but it would equalize the percent changes as well.
Two analysts with differing opinions yet offering price targets with anywhere from 35% to 60% drops from current levels. And that is the trend. Long gone are the price targets that elicited ‘to the moon’ dreams and talk of life-changing prices. Now, it is a function of who can turn themselves into the next price predictive magician who ‘called it’ correctly on the way down.
In other words…bear markets aren’t any fun.