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With the price of bitcoin continuing to fluctuate at around $ 3,500 after last week's sell-off, technical analysts have begun feverish debates over whether peak cryptocurrency will see further losses in the future. Crypto BitOoda's brokerage firm is likely to decline further, but argues that this will strengthen – not weaken – long-term bitcoin.
Is the 2011 silver bubble the key to Bitcoin's future?
Writing on a daily note to customers, BitOoda's executive vice president, Brian Donovan, said the bitcoin is imitating the trajectory of the 2011 silver bubble, which saw the spot price of the precious metal exploding at almost $ 50. and then crashing immediately afterwards. Today, silver is trading at $ 15.59, almost 70 percent below its April 2011 high.
BitOoda has outlined similarities with the recent 2011 silver bullish and recent bitcoin price movements from the beginning of December, predicting at the time that bitcoin would probably have fallen to intermediate lows of about $ 3200 within one to three months. . This thesis was confirmed, with BTC / USD down $ 3,128 less than two weeks later.
The company continues to believe that the boom and the failure of silver in 2011 provide suggestions on the medium-term prospects of bitcoin. Unfortunately for the bulls, this means a stormy prediction that could see the top cryptocurrency fall to $ 2,400 before re-establishing its position.
Donovan wrote:
We believe this thesis still remains intact, which could mean seeing a break in the lows in the coming weeks. A 25% BTC selloff from the current low of $ 3200 would be around $ 2,400.
Because the decline in Bitcoin prices could finally attract Wall Street
In particular, however, BitOoda believes that this next sale could be just what the cryptocurrency market needs to finally break the bears' shoulders. With the price of bitcoins below $ 2,500, institutional investors who got lost in the historic period of 2017 may finally feel comfortable in the game of chance.
"If this [drop to ~$2,400] This happens, we believe that the new institutional actors will enter this space to start reallocating their assets and resources in Cryptocurrencies ", concluded Donovan." Since BTC has the advantage of the first mover and the recognition of the name, we think that this would be the currency that Wall Street uses as a way to invest to get exposure to the digital heritage. "
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