Bitcoin is currently bearish. In fact, things aren’t looking good since Bitcoin slipped from $8,300 to $6,100 since July 29. For some other altcoins, there are those digital currencies that have lost around 30 to 40 percent in a span of just twelve days.
Though there are those investors anticipating Bitcoin to slip further in the coming days, there are those who are still optimistic regarding Bitcoin such as Tom Lee even saying that “Bitcoin is the best house in a tough market”. If you will be asking Tom Lee, though Bitcoin’s price slipped significantly since the start of 2018, Bitcoin has increased its dominance in proportion to other cryptocurrencies.
But of course, you have to take into account that there are two different types of traders. There are those short-term traders who profit from sudden spurts. On the other hand, there are those that are in it to hodl.
Is It Game Over?
Since the price is currently down, there are the likes of Jeff deGraaf who is the head of technical research at Renaissance Macro Research, he mentioned that it may actually be “game over” for Bitcoin. deGraaf has been known to receiving multiple accolades for the past 20 years for his insights in investing. He suggests that Bitcoin’s price movement is “permanently impaired”.
According to deGraaf, he warned that Bitcoin’s “parabolic moves are notoriously dangerous for short-sellers”. He also added that the “Once the top is complete on the support violation the security in question can often be considered permanently impaired or even ‘game-over’. We are of course referencing Bitcoin as exhibit ‘A’ in today’s market”.
Is Bitcoin Headed to $4,000
Based on some technical analysts, there is a possibility that Bitcoin could slip further. There was even one who mentioned to Bloomberg that Bitcoin could even be trading at around $4,000. According to Mike McGlone who works for Bloomberg Intelligence, “Bitcoin is in dump mode, following the pump run-up on the potential for a US ETF. It may not subside until revisiting good support near $4,000—last year’s mean”.
But if you will look at the report made by Yale University economists, the same report that pointed out the correlation of social media and Google search on Bitcoin’s price, they mentioned that “The current implied daily disaster probability is about 0.4% for Bitcoin, 0.6% for Ripple, and 0.3% for Ethereum”.
Should You be Optimistic?
Is this a time that you should worry? Or perhaps, you should already sell your Bitcoin to minimize losses? Since the start of the year, many are anticipating the entry of institutional investors. With infrastructure now ready not to mention regulatory clarity slowly achieving the best scenario for institutional investors, it is always a good call to stay optimistic. In fact, large price swings are part of crypto investing.
In fact, it is a highly speculative digital asset. But there are a lot of great news happening in the world of cryptos today despite the US Securities and Exchange Commission’s decision to postpone the approval of a crypto-related ETF. Come to think of it, the agency is quite careful when it comes to ETFs in general.
