With the bitcoin #price continuing to hover around $3,500 following last week’s sell-off, technical analysts have begun fevered debates about whether the #flagship cryptocurrency will see more losses ahead. Crypto brokerage firm BitOoda believes that a further #decline is likely but maintains that this will strengthen — not weaken — #bitcoin over the long term.
Does the 2011 Silver #Bubble Hold the Key to Bitcoin’s Future?
Writing in a daily note to clients, #BitOoda Executive Vice President Brian Donovan said that bitcoin is mimicking the trajectory of the 2011 silver #bubble, which saw the precious metal’s spot price explode to nearly $50 and then crash soon after. Today, #silver is trading at $15.59, nearly 70 percent below its April 2011 high.
BitOoda had been tracking #similarities in the 2011 silver bubble and bitcoin’s recent price movements since early #December, predicting at the time that bitcoin would likely #break toward interim lows of around $3,200 within one to three #months. That thesis was borne out, with BTC/USD plunging to a yearly low of $3,128 less than two #weeks later.
The firm continues to believe that silver’s 2011 boom and bust provides hints about bitcoin’s mid-term #prospects. Unfortunately for bulls, that means a stormy forecast that could see the flagship #cryptocurrency #drop as low as $2,400 before reestablishing its footing.
We believe this thesis still remains intact which could mean seeing a #break of the lows in the coming weeks. A 25% #selloff in BTC from the current lows of $3,200 would be to roughly $2,400.
Why the Bitcoin Price #Decline Could Finally Lure Wall Street
Notably, though, #BitOoda believes that this next sell-off could be just what the cryptocurrency market needs to finally break the backs of the #bears. With the bitcoin price sitting below $2,500, institutional investors who missed on the historic 2017 run-up might finally feel comfortable #gambling on the asset class.
“If this [drop to ~$2,400] occurs, we believe new institutional #players will enter this space to start reallocating their assets and resources into #Cryptocurrencies, “Donovan concluded. “Since BTC has first-mover advantage and name recognition, we think this would be the coin that ‘#WallStreet’ uses as an avenue to invest in to get digital asset exposure.”
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