After running into the highs of around $20,000 a few months ago bitcoin has seen a massive drop in value. In fact it fell as far as $7,000 in the last couple of weeks. However, by the time Friday's markets closed bitcoin was back over $10,000. This could be a potential bottom and could be a great entry point for investors since it has passed a psychological barrier o$10,000 before and when it did it skyrocketed several thousand more dollars before it slowed down. This could be another sign of a big run if it can hold support above the crucial $10,000 line. The reason I believe it will is because of how volatile bitcoin is right now. Falling from $20,000 to $7,000 shows the potential for big swings. Partnering this with passing a major psychological barrier and you could have yourself a run. In addition, stocks are also on the rise again which again calls for bullish signals in the market. I would like to see a double bottom formation before purchasing, but if bitcoin consolidates the next few days or continues to show strength I would recommend getting in.
https://www.thestreet.com/story/14492307/1/bitcoin-prices-will-double-in-2018.html
1 comment:
Volatility in trading virtual currencies is a key factor making risk-averse investors stand back.Investors really need to consider thoroughly in risk tolerance and their time limit in investing bitcoin.
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