Some have said that the price of Bitcoin has hit bottom and could only go higher, even if it is audacious enough to say it could return to its $ 20,000 high by the end of the year. However, according to a fintech and forex expert, the price of Bitcoin can only get worse. Polish fintech expert working with Aforti Exchange believes that the evolution of Bitcoin, especially in the period between December of last year and February of this year, is a classic speculative bubble. Although there have been recoveries in the course of the year, consumer interest and the volume of accompanying exchanges are steadily declining.
A speculative bubble
The market has been in a triangular trend since the end of February and if a breakout with the "prevailing downward trend of the descending triangle model" should occur, the implicit price of Bitcoin could go down to $ 100. This is according to Marek Paciorkowski, a expert in fintech and forex working with the Polish Aforti exchange. He explained further:
It may be hard to believe, but anything is possible in the financial markets and this scenario should be taken into account, especially if subsequent attempts to resume the long-term uptrend fail and Bitcoin ends up violating the $ 5,500 level.
Marek illustrated using the Bollinger Bands as the recent Bitcoin side movement and the reduced volatility of the market could be used as indicators of the opportune times of purchase and sale.
Bollinger Bands are statistical graphs that track the prices and volatility of financial instruments or commodities over time. Traders use them to evaluate the best time to buy or sell various goods. For those wondering when it might be time to buy or sell Bitcoin, Marek has some tips for you:
If the market continues to follow the Bollinger Bands, only the surplus of the 7,715 USD level will be considered a reliable buy signal, while falling below $ 5,613 will be an accurate sales signal.
The intuition of Marek differs from many other titans of the sector who have remained optimistic especially on Bitcoin. One of the most bullish is the billionaire investor and former hedge fund manager, Mike Novogratz, whose cryptocurrency Galaxy Digital became public at the start of this year in Canada.
Novogratz recently stated during an interview with CNBC's Fast Money that he believes Bitcoin could rally 30% by the end of the year. According to him, corporate interest has increased significantly in recent months, mentioning Morgan Stanley's recent Bitcoin trading plans and ICE's investment in Bakkt, a venture in which Galaxy Digital from Novogratz is an investor.
Novogratz also reiterated its belief that institutional investors are more interested in Bitcoin and not in other alternative sectors. This despite most of the altcoin has a bigger potential to increase in value. Bitcoin is a safe value store and is a better known and trusted brand, he said.
Bitcoin was trading at $ 6,690 at the time of printing, an increase of 2.6% in the last 24 hours, according to data from the Coin Market Cap.