Bitcoin lost more than 80% after reaching its peak in December of 2017. But now, many are actually wondering if the bull market is back for good. Unfortunately, Bitcoin sinks to $7,500 today. According to Financial Survivalism, “Bitcoin is testing a crucial area of support”. He believes that there are two scenarios. There is the possibility of continuing a bull trend or continuously drop to around $6,800 level.
FOMO is Expected?
Though Bitcoin dropped to around $7,500, there is no denying that the number one cryptocurrency has already surged in the past months. In fact, Tom Lee is back when he mentioned on Financial Times that we are currently at “level 5” in FOMO scale.
Lee mentioned that we are yet to get to “full blown” FOMO at “Level 10”. The Fundstrat Analyst makes use of Bitcoin Misery Index in order to have a hint of the current sentiment in the market. He believes that once we reach $10K level, that’s when we are going to see the same bull market experienced in 2017.
Lee even tweeted earlier this month that “$10,000 will see FOMO from those who gloated about the 90% crash in BTC… and those who saw Bitcoin dead as forever”.
Though Lee has made mistakes when it comes to his predictions especially last year, he now believes that if Bitcoin reaches $10K, there is a chance that Bitcoin will get to $40,000. Could this be possible at this point?
Erik Finmann, who is a Bitcoin millionaire, known for pronouncing Bitcoin to be “dead” late last year, is now currently looking to “resurrect” Bitcoin. He plans to send the price of Bitcoin back to $20,000 by the end of the year.
Finman believes that Facebook adopting cryptocurrencies is a big deal in getting Bitcoin back up to its all-time high. In addition to this, you also have US presidential hopefuls that are now talking about cryptocurrencies. Finman said that “2019 is the new 2017 for Bitcoin and cryptocurrency”.
He also added that “Cryptocurrency is hitting its stride and all the things happening in the tech and finance industry right now are boosting Bitcoin and crypto. Blockchain is the cutting edge”.
But unlike 2017 wherein Bitcoin’s price was mainly because of ICO mania, you now have regulatory changes happening left and right. In fact, the US Securities and Exchange Commission are doing their best in order to regulate the industry. Bitcoin and Ethereum being considered as commodities can be a good start.
Room for Improvement
For Finman, there is a need for the Bitcoin network to lower its transaction fees. In addition to this, it is also imperative that it speeds up the transactions. But of course, these are all challenges that are all easier said than done.
He mentioned that “People who live and breath Bitcoin, working closely with others who are in the same positions as themselves, can sometimes forget that they need to on-ramp new people who aren’t yet into crypto”. Could it be possible to see Bitcoin back in $20,000 this year? Or is it going to be a long way back for Bitcoin?