Is $3,500 the Floor for Bitcoin?
2018 was a terrible year for cryptocurrencies - a sharp change from the 2017 boom.
However, it appears that the bulls haven't given up the fight.
Large banks have set up cryptocurrency desks, offering some legitimacy to cryptocurrencies, for example. In fact, Goldman Sachs and Morgan Stanley are all developing ways to allow their investors to securely invest in crypto coin. "Banks in 2019 will likely invest much more money into cryptocurrency projects," said Samantha Albright, FXM Capital, as quoted by Newsweek.
Big retailers are partnering with the ICE to allow customers to pay for products with cryptocurrencies, such as Microsoft and Starbucks.
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We also expect another shot at a Bitcoin ETF, especially with Commissioner Hester Peirce as supportive as she has been. One fund to watch will be a new ETF filing from VanEck.
Even the experts are still very much bullish.
Fundstrat's Tom Lee for example believes we'll see upside with near-term institutional adoption. He notes that a lot of growth will be digital. Therefore, digital assets will be under a good amount of demand. Chief Economic Advisor at Allianz, Mohammed El-Erian believes Bitcoin would go through several phases, first being overconsumption and the second being an adjustment, as noted by Blokt.
Technically, it appears the bottom appears to be in.
After a rough outing in late 2018, Bitcoin (BTC) has been consolidating around $3,500.
Not even news that the CBOE pulled its request to list an ETF was enough to knock BTC below this key “line in the sand.” In fact, such a calm response to such bearish news could very well be a sign of bear market exhaustion.
That alone is leading some analysts to suggest a bull run may be ahead, as investors choose to remain calm rather than panic in chaos.
“As we’ve been discussing, bitcoin has been trading in a tight range between $3,500 and about $4,100,” said Mati Greenspan, senior market analyst for eToro, as quoted by News BTC. “What’s exciting about yesterday’s move is that the direction was quickly reversed and in the aftermath, we even saw a mini rally. This is a very positive sign and could very well indicate that we’re at or nearing bitcoin’s price floor.”
As long as BTC can remain above the $3,500 “line in the sand,” it could prove to be a long-term bottom for the coin. Stay tuned for more on this.
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