Bitcoin breaks below the $5000 level as the bearish pressure continues to mount. While Euphoria has again gripped the market, Binance CEO, Changpeng Zhao, feels that the buying volume post the bullish candle on 2nd April on Bitcoin is indicative of the buying intentions that were waiting for BTC to make a move.
Moreover, some analysts also reaffirm that the crypto-investors haven’t seen an actual ‘bubble burst’ yet. The total market capitalization of the dot com bubble was about 6-7 times higher than the total market capitalization of the cryptocurrencies during 2017 spike. Hence, upside in the long-run is an absolute certainty.
Why Some Analyst Are Not Buying This Bounce?
“That said, if we can break $6200 for BTC, it will likely mark the start of another major bull run and could run hot and high..”
Moreover, Billionaire Investor, Richard Heart feels capitulation period would being again and the break below $5000 is on the cards; According to him, it is probably “the beginning of the end.”
He also stated that “Futures market don’t believe in this rally,” the premium on 90 days future on CME is around 30%. Hence, institutional investors are not likely expecting a bull run anytime soon.
Highlighting the Technical aspects, Heart mentioned that the twelve 12-hour RSI of Bitcoin is at the highest level of all times. Moreover, the daily RSI is also above 85. Therefore, according to him, any buy orders now is “likely to get rekted by 30%.” He also mentioned about the ‘fake out’ that was experienced during the last bear market of 2015 as well.
However, another leading trading and CNBC host, Ran NeuNer is still bullish on Bitcoin, as the recently tweeted,
“This dip doesn’t concern me. The same fundamentals that were there 48 hours ago when everyone was bullish are still there. It would be naive to imagine that the market would go up in a straight line. My view, we have seen the worst & it’s up from here albeit with bumps along the way.”
Moreover, Richard Heart also mentioned that if the period of the investment in Bitcoin exceeds more than three years, it would surely turn out to be profitable.
Will we see $3000 levels again? Was the move last week a potential bull trap or the bear market is behind us already? Please share your analysis with us.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com