After days of holding steady between $6,400 and $6,700, Bitcoin finally made it past the $7,000 resistance level. The market capitalization made a substantial recovery from shy over $200 billion to $226 billion.
Bitcoin (BTC) has been moving sideways for quite some time and is finally breaking out from the resistance around $7,000 and is currently trading around $7,092. According to Tradingview, the next resistance level could be around $7,700.
A reason for the positive sentiment in the market might be because Bitcoin futures markets hit a record low last week which could indicate that we will get a shorter bull run. Data from the futures market serves as a good indicator of price direction as futures contracts are generally the pursuit of professional investment firms with significant knowledge and cash behind their positions.
Many big names in the cryptomarket have earlier stated that we might see a bull run the last part of the year. Fundstrat Global Advisors’ co-founder Thomas Lee still expects Bitcoin to reach $25,000 by the year’s end. Tech Billionaire, Tim Draper, has predicted an astounding figure of $250,000 Bitcoin price for 2022. Draper has been predicting the Bitcoin market well. In 2015 he predicted that Bitcoin would be $10,000 by the end of 2017, which ended up very true as the BTC price was above $13,000 on December 31, 2017.
Not all Bitcoin enthusiasts are positive though, Bitcoin advocate Charlie Shrem has recently stated that we are still in a bear market. Even though he is long-term bullish, the market has its cycles that usually lasts 2-3 years according to Charlie.
Then again we will always have investors and “experts” who make predictions. The cryptocurrency analyst Jacob Canfield recently found an interesting correlation. He found that 95% of Bitcoin predictions have been wrong and the market has done the opposite than the predictions.
Naturally, it remains to be seen whether these predictions pan out or if they will also miss their target. It could be that the lows are in place, but it is as likely that we see a small recovery and then carry on further down.
Since we do not know the direction, it is crucial to have a strategy when investing. Maybe it is best to follow the methods used by billionaire investors? Yale did a study a few weeks back where they found that many successful investors think that every portfolio should hold cryptocurrencies but should diversify and not allocate to much in this volatile market.
Image Source: “Flickr”
My name is Dennis Sahlström, I have been trading and investing since 2012 and have since June 2017 made between 3-6% a month. I have been watching the crypto market since the beginning of 2017 and saw the great returns a lot of people had gotten. I thought I needed to do my research! Since then I have been studying the crypto market and realised the great potential Blockchain have. Some say it’s internet 3.0 we are looking at and I am sure its here to stay. It is already changing industries and the world. Also, I am running a crypto education platform because I think people should educate themselves about the opportunities we have in front of us.