Bitcoin has been doing pretty well lately. In recent days, the currency has reached a new high ever and has shot beyond the $ 22,000 mark, bringing the world’s number one cryptocurrency by market cap to its most bullish peak yet.
Bitcoin Is Doing Well, But Could This Streak Become an End?
However, while the asset appears to be surging, many are worried that the positive waves making their way through the industry will not last much longer. Some analysts are warning their followers that things are going to take a nasty turn in the coming weeks and months, and that the time to prepare is now.
One such person is Tom DeMark, a technical analyst who is convinced that bitcoin is about to retreat into bearish territory. In a recent interview, he said, technical charts show signs of an incoming bitcoin barrier, and he warns investors before they reach for the stars with crypto.
He comments:
While it may seem futile to take such a stance, here’s what our combined timing models suggest about bitcoin right now … The previous cases that this long-term model has talked about are include the exact high December 18, 2017, the exact same day December 14,2018, and then the exact day high June 26, 2019.
It says that bitcoin has exhausted all of its current rising power, and points to these high and low dates as previous warnings for “the curb of the currency.”
He continues to explain:
If one added 9,430 points to the June 26, 2019 peak, it projects upside to 23,288, which is in the zone where the current market is trading. Clearly, there is no certainty in the forecasting business and it is often advisable to wait for confirmation of a trend completion rather than make a bold prediction. However, waiting for a closure less than the immediate closure four or five days earlier and the next day of disadvantage would sacrifice opportunity.
His thoughts may be wrong …
While we would like to avoid such conflicts, it is difficult not to consider DeMark’s words. When bitcoin seems to be on a sharp rise, it is usually during these times when the currency is taking a turn for the worse. This happened in 2017, when bitcoin hit its all-time high of about $ 19,000 +. Many traders thought that the currency had developed a new maturity that would take it to the moon, but this was not necessarily the case.
The currency ended up losing about 70 percent of its value within 11 months, and the spike appeared to be a bit of a fluke, but at press time, it is widely argued that the current bull run is different from the one in 2017 given that it is mostly powered by institutional players rather than retailers. With this new support, bitcoin could wind up hitting all sorts of new top-tier jobs.