In early 2018 when the bear market started, the common prediction was that crypto was just correcting, and that it would outperform its all-time highs within a few months. Predictions like $100k BTC were rampant. Some were even calling one million dollar Bitcoin (BTC) by December 2018. Fast forward 12 months later, and the story has changed. The emerging tune now is that, Bitcoin (BTC) is going to $1000. Will it ever get there? Most likely not.
All that will possibly happen is that, the people who were buying Bitcoin (BTC) at $16k waiting for $100k will now be shorting it, waiting for $1000, and they will lose, again.
The reason is simple, markets, whether crypto or otherwise, don’t respect the masses. Smart money, the very top cream of capitalism is always waiting on the sidelines to make a move against the average investor. That’s why, when everyone and their grandma were rushing to buy Bitcoin (BTC), the futures were coming up, and smart money was shorting it. Now that the hype is turning to doom and gloom predictions, smart money could be looking to buy into BTC, and repeat the cycle. Is there any rational basis to this assertion? Absolutely yes.
All one has to do is look at the charts. In late 2017, Bitcoin’s long-term charts showed a market that was overheating. At the moment, Bitcoin (BTC) is bouncing up and down a key support level at $3200. The fact that this support is holding strong means that Bitcoin (BTC) is unlikely to breach it. In fact, it could offer a perfect re-entry point for smart money, and the possible starting point for another bull run.
Then is the fact that there are lots of people hoping for cheaper bitcoin (BTC). This means that any drop below $3000 would be quickly bought up, eliminating any chances of this crypto ever going to as low as $1000. People already know that Bitcoin (BTC) has the potential to hit $20k or more, and this will create massive buying pressure anywhere below $3k. In fact, even if Bitcoin (BTC) were to drop to such a level, chances are that it would not stay there for more than 24-hours. In fact, the buying pressure it would create could easily trigger a massive rally in Bitcoin, and the crypto market in general.