BEIJING, CHINA / ACCESSWIRE / April 23, 2019 /But as we all know, Buffett said, Others fear our greed. This article is based on the view of senior trader Camilla Gao, explain the future of virtual currency.
Bitcoin is developing, but how long can it last?
We all remember that Bitcoin soared to about $20,000 in December 2017. At that time, the currency seemed overwhelming, and the currency holder was likely to guess all day how much it would rise.Some analysts say that Bitcoin and its encryption brothers may take years to reach historical highs again.
Bitcoin is not the only currency that has risen. Also joining Bitcoin are entities such as Ethereum, whose price has risen to about $1,400; bitcoin cash has broken through the $3,000 mark, and Litecoin has broken through the $400 mark.
By January of the following year, some of the cryptocurrencies began to fall, but some thought it was only a minor correction, but the results almost erased the increase in all cryptocurrencies. In the case of Bitcoin, for most of the second half of the 2018, the price of Bitcoin was around $6,000. However, by Thanksgiving, the asset has fallen to around $3,000. Ethereum eventually fell to the $80 range, and Litecoin fell below $60.
Since the beginning of 2019, Bitcoin has grown by about 40%. As of press time, the transaction price of the stock has exceeded $5,200, which is higher than the highest level in the past five months. However, some analysts believe that the bitcoin will not appear in the bull market in the near future.
Camila Gao said that the feelings are based on factors such as the 1929 stock market crash. UBS analyst Kevin Dennean said that Bitcoin is following the footsteps of the previous bubble, reflecting the 1929 crash, the 1989 Nikkei and the 2000 Nasdaq.
Camila Gao also mentioned Kevin's comment: The argument here is that Bitcoin has gone through a bubble phase, ready to be reborn like a phoenix nirvana, as it did in other assets and indices in the past. What struck us was how long it took for other asset bubbles to return to their peak levels. The Dow Jones Industrial Average price index was 22 years old, and the annual return from the bottom to the recovery is usually unremarkable.
Most of the asset classes mentioned, including bitcoin, have fallen more than 75% from historical highs. So far, Dow Jones and Nasdaq are the only markets that have reverted to previous levels. The Nikkei index plummeted about 30 years ago, but it has not yet fully expanded. The current transaction price is about half of its peak level.
Camila Gao further said: Perhaps what happens after the cryptocurrency bull market should resume the bubble - not every bubble burst can be restored to the old height. But virtual electronic money such as Bitcoin is fine.
Short-term price forecast
Camila Gao said that the price need to break through the $5,200 level. The next key resistance may be $5,255, and the 61.8% Fib retracement at the time of the last decline may have fallen from a high of $5,464 to a low of $4,920. If it successfully closes above $5,260, it could open the door for a strong rise to $5,330. On the downside, the recent resistance of $5,120 may provide solid support.
Company: SHIXI HOLDINGS Beijing Management Co., LTD.
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SOURCE: SHIXI HOLDINGS Beijing Management Co., LTD.