Crypto Analysts Take Bullish Stance Even With 33-Percent BTC Corrections
The early 2019 Bitcoin shift mirrors the trend of the cryptocurrency during Q4 of 2017, when Bitcoin reached its all-time high of nearly $20,000, claim crypto analysts. They explain that the latest price drops are perceived as temporary fallouts. Despite the BTC devaluation of over 30% during the last month, the BTC value perspectives remain bullish.
One of the bullish theories assumes strong support zones at the $9,000 and $8,500 levels. Traders expect Bitcoin to drop even further — below $8,000, before climbing back up in the 5-digit sector.
The main reason, according to analysts, is the transfer of Bitcoin from an exchange medium to value storing currency. The amount of dormant wallet addresses reaches an all-time high, even amid price decreases.
Coin Metrics published a report, stating that addresses with unchanged Bitcoin amounts from 180 days to two years reached 21-percent of all Bitcoin wallets. The results indicate that more and more users are finding Bitcoin as a „safe haven“ for their funds, rather than using the cryptocurrency as a virtual exchange medium. However, the all-time high may be caused due to forgotten Bitcoin addresses, due to the online nature of Bitcoin. Tuur Demeester, the founding partner of Adamant Capital, stated that 2 to 5 years for Bitcoin to stay at one spot without selling it is a very long time. Most likely, the fund is being lost or forgotten over time.
Coin Metric’s graph, however, showed a significant increase in the number of unmoved Bitcoins in the six-month and year-long marks.
Another big bullish theory is that miner capitulations (when miners find mining a BTC more expensive, as Bitcoin’s price swings downwards) have a close relation with price and difficulty adjustments. PlanB, one of the prominent crypto analysts, took his time to render a graphic to display that as price drops, miners do a “sell-out” on their BTC holdings, and difficulty level adjusts due to the lack of computing power. Right after the sell-out, Bitcoin skyrockets, making up for the lost ground. PlanB also noted that nowadays it takes much more capital to raise prices that high, just by investing in Bitcoin, as it was in 2011.
Another popular crypto analyst — Filb Filb, also took a bullish stance on Bitcoin. He clarifies that despite the correction it’s nearly impossible for BTC to hit it’s 2019 low — $3,120. Filb also takes into consideration the fact that miners are selling their newly-mined coins, just like they did in 2018.
“Only those who adapt to the situation continue to mine. Others get eliminated”, Filb said in an interview.
Filb joins PlanB and other bullish crypto analysts, as they forecast that Bitcoin would keep its position close to $10,000, before spiking up in the +$20,000 area. The reason for their forecasts is that the pre-halving stage of Bitcoin commences and before halving prices usually increase (halving is when the price for mining a block of Bitcoin drops with 50%).
As of press time, the world’s #1 cryptocurrency is trading at $9,493.71, with 64,5% dominance over other cryptocurrencies and $169 415 431 335 in market capitalization.