Over the past two months, Bitcoin has recovered from $ 3,210 to $ 4,071. That's an increase of over 20 percent. This recovery has been fueled by increased lower-end demand.
Many analysts believe that the price has found a real bottom and will now increase in the long term. That's why it would be a good time to buy Bitcoin now. But Bloomberg analyst Mike McGlone sees things differently. He says that Bitcoin will remain in the price basement in the first two quarters of 2019 as well. McGlone expects the recovery to be short-term and the bear market likely to continue.
Bitcoin trading volume is low
In November and December, all major cryptocurrencies were highly volatile in the lower price range. There were no signs of stabilization. The daily trading volume in the last three months averaged $ 15 billion. This is rather small, especially when you consider that the trading activity of an asset tends to increase in volatile phases.
The low trading volume mainly affects smaller crypto currencies. These have in part reached annual lows in terms of their trading volume. It therefore seems unlikely that these assets will breach important resistance levels in the near term.
Compared to Bloomberg, eToro's lead market analyst, Mati Greenspan, explained his point of view. He explained that Bitcoin is still closer to the ground than to the top. It could therefore be expected with increased demand. The low price is interesting for both retail investors and institutional investors. So he said:
“Normally, it's best to buy at a low price and sell at a high price. Looking at the technical analysis, it's very clear on the chart that we are much closer to the ground than to the top. I see an industry that is growing very fast at the moment. Companies that deal with Bitcoin or the blockchain hire many people. Constantly new projects are published. So there is a lot of evidence that people are increasingly accepting the market. “
A Stable 2019 Year for Bitcoin
The crypto currencies may soon see a price recovery. However, given the last two quarters of 2018, the asset class is also likely to be prone to large losses.
An ideal scenario would therefore be for Bitcoin and the crypto currencies to gradually recover in 2019. Looking at Bitcoin's historical development, it is likely that we will see some stable quarters this year.
Source: Bloomberg, Pixabay
Author: Peter Joost – Source Post: https://www.kryptovergleich.org/bloomberg-bitcoin-kurs-wird-wieder-fallen/
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