The cryptocurrency market has rebounded in the past week, up 15% from its recent lows, but analysts and corporate CEOs are expected to move further before returning to the highest point of history ($20,000).
Bitcoin may fall to $2,000 before hitting $20,000."
This week, the cryptocurrency community finally breathed a sigh of relief, as bitcoin prices quickly rebounded from the lows of 2018, 15% higher than the previous low of $5,750.
Despite the higher bitcoin price and bitcoin seems to have broken its bear market trend, the CEO of ADVFN expects Bitcoin to continue to move lower. Clem Chambers, CEO of the financial data provider, expressed his views on the direction of the cryptocurrency market to Express U.K.
When asked by an Express UK reporter at the CryptoCompare MJAC blockchain summit to reach the $20,000 level, Chambers stated:
"Bitcoin may fall to $2,000 before hitting $20,000."
Chambers further added that Bitcoin is "very likely" to eventually reach a price level of $100,000.
He holds this optimism about Bitcoin because he believes that blockchain and distributed ledger technology (DLT) will become technologies that change the world, similar to the Internet revolution in the past 20 years. The CEO of ADVFN said:
“The blockchain will be the way to the future, just as the Internet has had an impact on the previous generation. In the long run, bitcoin may become part of the future.”
Chambers further explained his price forecast. He talked about the shortage of legal tenders and added: "There is a real shortage of money in the world." This is what people, I don't think has been solved. He clarified this:
“The fiat currency does not create enough money to make the world work. These cryptocurrencies fill this gap. Because this is an economic attraction, and cryptocurrency is filling this vacuum. This will bring (for Bitcoin) Economic improvement."
This has become an important sentiment in the cryptocurrency industry, and many believe that crypto assets will begin to replace government-issued currencies.
A mood that echoes: Bitcoin falls further before it rises?
As the market enters the second half of 2018, the sentiment that this bitcoin will fall further before reaching $20,000 will be echoed by other cryptographers and experts. Arthur Hayes, chief executive of bitcoin exchange Bitmex, said bitcoin is expected to reach $50,000 by the end of the year, but may fall to $3,000 before then.
When appearing on CNBC's Fast Money show, Hayes said:
Ok, I think something that can rise to $20,000 in a year may have a callback of about $6,000. I think we can definitely see Bitcoin bottoming in the range of $3,000 to $5,000, but we are based on a positive regulatory policy, which may be an ETF approved by the US Securities and Exchange Commission, which will make Bitcoin climb It costs 20,000 US dollars and even reaches 50,000 US dollars.
Despite recent price spikes, Ran has said that Bitcoin will need to retest resistance levels to ensure price reversal.
Price increases alone cannot reverse a cycle, they need to grow with the amount. In the past three months, we have seen such volume in the market. Today, 24-hour trading volume is 25% higher than the average of the past 30 days. I am not excited yet, but it looks much better.
Some cryptocurrency traders, analysts and executives believe that bitcoin will fall in the short term. But one thing is clear. Experts like Hayes and Ran Neu Ner still expect Bitcoin to continue to rise in the long run, easily surpassing previous historical highs.