According to the Pantera CEO, the Bitcoin is at the perfect price level for investors to make huge profits when the inevitable rally kicks off. Many analysts have predicted that Bitcoin prices will go beyond the $20,000 mark in 2018.
The cryptocurrency market has been in decline for most of 2018. The last quarter of 2017 saw huge gains for many crypto species with Bitcoin stealing all the headlines as it almost crossed the $20,000 milestone in mid-December. However, increased regulatory scrutiny and a host of other factors have sent prices plummeting more than 50 percent. In fact, cryptocurrency prices have plunged by an average of 65 percent in 2018.
Commenting on the general value decline, Morehead says that crypto prices are at their cheapest level.
“In our view, all cryptos are very cheap right now. [Thus, it’s] much cheaper to buy now and participate in the rally as it goes.”
There has been talk of an imminent price rally for the majority of 2018. From the predicted Q2 price surge to the end of tax season and even a price boom activated by the Consensus conference, analysts have given different predictions. However, the price rally has failed to manifest itself with any short-term gains immediately obliterated by a sudden slump.
Morehead remains bullish about the prospects of bitcoin saying:
When the currency breaks through its 200-day moving average, if you buy that day and sell a year later, you make an average of 239 percent.
According to Morehead, the above tip is particularly useful for bitcoin which has exhibited the trend at least five times in the past six years. Using the same market indicator, Morehead believes that Bitcoin is at its cheapest level. Thus, now is the best time to buy bitcoin. He also advised investors to be aware of the fact that cryptocurrencies rarely ever become cheaper than their long-term average price.
In a similar development, Robert Sluymer is another recent chat with CNBC declared that Bitcoin had found its bottom price limit at $7,000. Sluymer also said that the next thing left for bitcoin was to go on a sustained price rally, beginning with clearing the $7,800 threshold which proved difficult to surpass in May 2018. Sluymer also identified the current internal trade tensions as well as the brewing financial crisis in Italy as potential catalysts for a sustained bitcoin price surge.
Using market indicators like the bitcoin Relative Strength Index (RSI), Sluymer said that the number one cryptocurrency is currently in the oversold position. Thus, going long on bitcoin is the best call to make which means that the bulls are about to have one over the bears. Sluymer advised traders who have gone short on bitcoin to adjust their exposure.