This week has been quite interesting for Bitcoin, the largest cryptocurrency by market cap and the most popular digital coin out there. However, the interesting appeal was not because of its new surge (which was quite minimal but important) – but the fact that even the biggest Bitcoin bulls are confident about a new price drop.
Despite Fundstrat’s Tom Lee who again reaffirmed his $25,000 to $30,000 Bitcoin price projection by December 2018, other bulls are not as optimistic and think that the BTC price may fall to the $5,000 region before recovering and initiating a new rally.
One of them is the ShapeShift CEO, Eric Voorhees and the cryptocurrency investor Anthony Pompliano, who is known as Pomp in the crypto waters. Both of these analysts recently stated that the bear market for Bitcoin is not over yet – and that the dominant cryptocurrency may see a drop to $5,000 just before it initiates another major rally.
Voorhees was a guest at the CNBC Crypto Trader show, where he stated:
“I don’t expect it (bear market) to end soon, although I do think that the rate of collapse has slowed considerably. Generally in these bubbles, after you go through several months of a downtrend you hang out in a range for a while… But I think we are done with a majority of the collapse.”
The founder and CEO of the major digital asset trading platform ShapeShift also noted that while the bear market for Bitcoin is not close to an end, the worst part of the correction has slowed down.
This, coupled with the fact that Bitcoin’s volatility has dropped to a 14-month low, are enough proof that the stability of BTC is quite weak – despite the recent gains that pushed Bitcoin near the $7,000 mark.
Pomp, on the other hand, is more pessimistic about the BTC price than Voorhes. As he wrote in his latest newsletter:
“The final data outputs left me with a few uncomfortable conclusions. The most notable one is that we are likely to see Bitcoin near $3,000 before we see Bitcoin at $10,000 again. If this is true, that means we still have ~50 percent price decrease to go. Things may get really, really ugly if this happens.”
Many analysts are seeing Bitcoin falling to $5,000, $4,000 and even as low as $3,000 before another mid-term rally occurs. However, they also believe that the resistance levels for BTC are right now set to $10,000 to $15,000 by the end of December, which gives many investors additional confidence about buying BTC at its lowest price.
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