Over recent weeks, Bitcoin (BTC) has moved with seemingly no rhyme or reason, as price action is sporadic and bouts of volatility are hard, even impossible to foresee. Yet, CoinTelegraph has done its best to provide some insight, enlisting the help of notable industry analysts and commentators to discern where cryptocurrencies could be heading next.
While the outlet may have been ill-timed with its most recent crypto market update, as BTC’s 8% rally and Litecoin’s 30% pump may have rendered some comments moot, the information presented contains some value nonetheless.
eToro’s in-house crypto researcher Mati Greenspan remarked that as it stands, $3,000 is a key level for the cryptocurrency. Greenspan, who has quickly become a leading voice in this space, explained that Bitcoin has historically been a price point of utmost importance, citing BTC’s temporary inability to surpass the figure during 2017’s monumental bull run.
Combining this long-term support level with a downtrend line from the $20,000 top that BTC established in late-2017, Greenspan depicted a long-term triangle. Last time a formation that was reminiscent of the one drawn by the eToro analyst appeared, BTC broke lower. Yet, the chartist noted that past performance is never indicative of future results.
Thus, Greenspan subsequently drew attention to fundamentals to try and discern where Bitcoin could be headed next from a different viewpoint. Citing data from Blockchain.com, the underlying Bitcoin blockchain posted an average of 2.25 transactions per second in February 2018. Now, that same statistic has swelled to 3.85, even as prices have fallen drastically. This has only been underscored by the fact that the current aggregate transaction count is at levels seen in November 2017.
Greenspan added that the rising demand for Bitcoin on platforms like LocalBitcoins, a recently-hacked peer-to-peer trading service that caters to nations with access to scant financial infrastructure, also accentuates that BTC’s value proposition is rising steadily.
Analysts Claim It’s Time To Stock Up On Bitcoin
With this in mind, Greenspan remarked that many analysts believe that if you’re looking to stay committed to the cryptocurrency space for five years, a decade, or even longer, now’s the perfect time to dollar-cost average — “buying the dip.”
He added, even if BTC does break under $3,000, potentially moving as low as $1,800 or even $1,200-$1,300, many commentators believe that accumulating the cryptocurrency at $3,700 could still pay off. This comes after Murad Mahmudov, a respected crypto trader, to note that If Bitcoin doesn’t break through the 15-week MA at $4,200, long-term downtrend at $5,500, and the 50-week MA at $6,800, this market will establish lower lows.
Lower lows, which he dubbed crypto’s “hell phase,” will see BTC trade mostly flat between a long-term floor of $1,700 and $3,100 for months on end. Yet, Mahmudov noted that this could be a zone for long-term accumulation.
Mahmudov isn’t the only industry pundit touting the accumulation narrative either. Moon Overlord stated that block reward halvings/reductions are the fundamentally strongest occurrences, and thus, investors should buy cryptocurrencies in anticipation of such events. Alistair Milne echoed this comment, joking that those who don’t have plans to buy BTC en-masse in the upcoming months, especially as Bitcoin’s issuance reduction nears, don’t even “do crypto.”