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Although crypto markets are seeing a wave of volatility that has plunged them down today, a notable critic of Bitcoin and cryptocurrency in general is now predicting that Bitcoin could reach $ 5,000 in the near future.
Comments have come as markets are witnessing an increase in weakness after Bitcoin has failed to stabilize above $ 4,000, which means it is plausible that markets will see further losses before reaching the $ 5,000 level.
Investors at risk tolerant could see easy profits on Bitcoin
Comments about Bitcoin reaching $ 5,000 came from Jeffrey Gundlach, managing director of DoubleLine, a well-known Bitcoin critic and the over $ 200 billion asset manager.
Speaking with CNBC, Gundlach noted that investors who hold high risk tolerance could get easy profits if they are willing to negotiate Bitcoin. Although this sounds good, it is important to note that he is an explicit critic of the cryptocurrency that previously told investors to "hunt by Bitcoin".
"I do not recommend anything with bitcoins, really … but if you really want to speculate, I think it could go up to $ 5.000, we're talking about an easy 25 percent," he explained.
Currently, analysts believe that Bitcoin is captured in a wide trading range between $ 3,000 and $ 5,000 which validates Gundlach's view that Bitcoin could easily reach this price in the near future. The question is whether the bulls will be able to build enough upward momentum to push the price of the crypt above this level.
"If we reduce the zoom … we can see that the total range in which we find ourselves ranges from $ 3,000 to $ 5,000 per coin … So we are now halfway in the middle of a wider range", Mati Greenspan, the market Senior analyst at eToro, explained in a market update at the start of this week.
Group of analysts: cryptographic markets are moderately bearish Entering in 2019
Although Bitcoin could very well be pushed to $ 5,000 in the near future, a market index is classifying cryptocurrency markets as "moderately bearish" when they enter 2019.
According to the SFOX Multi-Factor index, the current downward trend of the cryptographic market stems from a combination of the massive volatility of the assisted markets during the year 2018, which was reversed in the new year, and the FUD which is the result of an increase in regulatory repression by global governments.
The index uses multiple factors, including "volatility, market sentiment and continued industry evolution" to assess and quantify market conditions and varies from very bearish to very bullish.
As for volatility, the index notes that Bitcoin Cash and Litecoin were some of the most volatile major altcoins in 2018, while Bitcoin was one of the least volatile. This volatility derives mainly from the meteoric increase and the consequent collapse of these assets towards the beginning of 2018.
Although cryptographic markets are still undoubtedly feeling the impact of the 2018 bear market and are likely to be caught in a wide trading range of $ 3,000 to $ 5,000, market critics also see that there are huge profits to be made.
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