Bitcoin Buying Opportunity?: Has Bitcoin price reached the bottom of the recent bearish cycle? Market pundits were predicting that Bitcoin price had hit the bottom of the bear run earlier this week when the coin traded at around the $7,000 level; saying the cryptocurrency markets are undervalued following the most recent selloff.
Source Image: coinmarketcap.com
Buying during the dip and selling during the high has always been considered a smart investing strategy and Dan Morehead –founder of Pantera Capital Management, is a current advocate of this practice:
“All cryptocurrencies are very cheap right now. It’s much cheaper to buy now and participate in the rally as it goes,” Morehead said Thursday on “Fast Money.”
Bitcoin Buying Opportunity? Why Does Dan Morehead Anticipate a Rally?
Bitcoin price and the rest of digital currencies have posted significant losses in the last three consecutive weeks. The selloff has pulled the total cryptocurrency market close to $300 billion, down more than 60% from the all-time-high it achieved at the beginning of the year.
The founder of Pantera Capital Management says that the market has reached the bottom of this year. He anticipates upcoming investments from Wall Street will push the prices higher in the next couple of quarters.
“Many institutions are essentially buying the rumor [of potential SEC regulations] and selling the fact,” he said. “Getting invested now so that in three, four, five months when the institutional, quality-regulated custodians that we’re hearing about come online, they’ll already have their positions.”
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Is it a Buy?
Source Image: twitter.com
Cryptocurrency markets have been under pressure over the last few months amid regulatory concerns and huge price volatility. Technical analysts, on the other hand, are now expecting some bullish momentum in Bitcoin price. Although Twitter users mostly agree with Dan Morehead’s thesis that the market has hit bottom, they aren’t yet sure how significant this bullish trend could be.
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