In the last couple of weeks, predictions have been flying around on which direction Bitcoin takes next. After having a perfect start to 2019 and having many believe that the crypto winter had come to an end, the crypto leader took a turn for the worse mid-month proving most wrong.
Prior to the drop, the trend seemed outright positive and pundits were calling for a $5,000-$6,000 position in the short-term and in the long-term, much higher.
Should a rally be triggered in the near future, the real test will stand at the $5,000 position, easily dictating whether prices soar or continue falling.
Gloomy Predictions And Indication For The Short-Term
Unfortunately, since the market took a downward trend mid-month many are starting to call for new lows. According to many, Bitcoin is yet to bottom and is headed for a position within the $1,500-$2,500 range.
In fact, according to some, who base their argument on the “amazing fractal repetition”, Bitcoin will bottom at $1,100.
Pundits will keep on disagreeing on the real bottom but there’s definitely no denying there is real negative momentum in the market.
A recent technical indicator “GTI VERA Convergence Divergence Technical Indicator” earlier this week indicated that Bitcoin had entered a sell-off phase.
The last time the indicator lit up, Bitcoin dropped from $6,400 to $3,400. So, are we headed for $1,500?
It is almost certain that Bitcoin is not going to make a dramatic surge in the short-term. But, there are reasons not to give up on it yet, in fact, holders are using this opening to stock up.
Possible Catalysts That Could Trigger A Bull Run
One of the easiest ways that will possibly allow Bitcoin to soar is hitting a bottom and a low one for that matter. Why? Institutional investment. For some time now, institutional money/Wall Street has been looking to get in on the market and prices bottoming especially at a very low position will lure them in.
Their involvement is expected to create demand and hype around Bitcoin and drive prices up.
The hype around the much-anticipated Bitcoin ETF is also a possible catalyst. But despite many institutions applying and Cboe resubmitting just days ago with some crucial changes to the application, approval remains unlikely, at least in the short term.
Also, Bitcoin’s key obstacles to mainstream access continue to be knocked out. Security, regulation, and accessibility have been Bitcoin’s key obstacles since it was launched and through plenty of work and development, it is almost certain that the crypto leader is in its all-time high in the three issues.
This will boost its next rally as many potential investors will be more confident buying in.
There might be more pain for holders in the short-term but there is definitely also great gain in sight. What remains most crucial for Bitcoin, is its bottom.