If you are one of those who bought Bitcoin around the third quarter of last year and still holding on to your digital currency waiting for the next bull run, there are some people who think that it is far from happening. In fact, crypto investor and media personality Trace Mayer mentioned that it is a possibility that Bitcoin is going to hit $3,000.
However, using the “Mayer Multiple” price analysis tool, Mayer mentioned that the $3,000 would be “hopeful”. He thinks that the odds of it happening are now decreasing. How does he come up with his prediction? He divides the price of Bitcoin on any given day by the 200-day moving average. And from here, he gives an insight whether to buy, sell, or even to HODL your Bitcoin. A reading that is below 0.9 suggests “strong buy”. It means that the price is “very undervalued”. When he made his statement, the multiple was at 0.85 which means that Bitcoin is actually undervalued.
Mayer mentioned that “Perhaps (the Bitcoin) crypto winter will last 6-9 months longer (hopefully!), touching $3k, but probabilities are getting less favorable of that possibility”.
However, despite his announcement and conclusion, The Multiple’s web page has a disclaimer saying that it doesn’t tell users whether or not they should be buying or selling Bitcoin.
Future of Bitcoin?
Mayer thinks that there will be a continuation of the “slow bleed” scenario for Bitcoin markets this year. And this will correspond to the multiple of 0.9 and 1.2. Based on this principle used by Mayer, for December 2018 and June 2019, there is a chance that Bitcoin price will fall around $9,850 and $15,500.
Bitcoin showed stability around $6,500. There are those saying that the stability of Bitcoin is due to the participation of institutional investors.
Bitcoin exhibited stability despite the losses that the crypto market experienced. In fact, Ethereum last week lost around 45% in the last 30 days. However, Ethereum was able to rebound by almost 20% after setting lows that haven’t been seen in the last 15 months or so.
If you are going to ask Tim Draper, he believes that there is hope in the crypto market. There is a chance that the crypto market is about to hit $80 trillion dollars. However, this won’t be happening anytime soon. There is a chance that this could happen in the next 15 years or so.
For Draper, he believes that people will eventually realize that crypto market is here to stay and can hit the trillion dollar mark.
More Declines to Come?
However, let’s admit that there is also the possibility that the price of Bitcoin will be declining soon. Mt. Gox is about to start paying creditors using either Bitcoin or Bitcoin Cash. That is $1 billion-worth of cryptocurrency flooding into the market. Definitely, this could affect the price of Bitcoin.
Will there be a possibility that Bitcoin is still about to reach $3K price range at this point? Is Mayer correct in his analysis of the current Bitcoin market?