- Traders are bearish on bitcoin after a 53% retracement.
- There may be more pain on the horizon but HODLers shouldn’t get shaken out.
- Bitcoin touts unique features that make the cryptocurrency an attractive long-term investment.
Bitcoin’s price has corrected by as much as 53% from the 2019 high of $13,880. Investor sentiment has turned extremely bearish. A few weeks ago, the idea of bitcoin trading at $5,000 was unthinkable. Today, many are calling for $5,000 to be the bottom of this downtrend.
Regardless of whether the bottom is at $7,000 or $5,000, it shouldn’t make any difference to hardcore HODLers. We talked to prominent traders and they agree: It’s very likely that bitcoin will continue to rise in the long-term. Don’t get shaken out.
Analyst: Demand for the Top Cryptocurrency Is ‘Programmed to Rise’
Bitcoin is the most scarce currency on this planet. According to Mati Greenspan, founder of Quantum Economics, this reason should give you confidence that the dominant cryptocurrency will likely rise in the long-term. He told CCN,
There will only ever be 21 million BTCs. Many have already been permanently lost, and many more are being HODLed. Given the number of people who consistently stack sats and the extremely limited supply, demand should be sufficient to drive prices up in the long-term.
From the perspective of an investor, bitcoin offers a value proposition that no other asset can. The digital gold is largely not influenced by other assets such as stocks or commodities. According to trader Max, this unique property gives this crypto its edge.
In capital management, you will sooner or later realize Bitcoin is the least correlated asset in the world. Portfolios across the world don’t differ that much, but bitcoin is not adopted in these portfolios in a widespread way. That is the reason why it’s the most uncorrelated asset in the world, meaning it’s a strong hedge against economic volatility.
The trader added,
Because Bitcoin is sound money and sovereign, it will provide a way to be sovereign to those who need it if tension rises to a point of crisis. Bitcoin will become a necessity and those who learn about Bitcoin, can see that. The demand for bitcoin is programmed to rise.
The Recent Selloff Is a Chance to Buy Cheap Bitcoin
As a true HODLer, you will see the pullback as an opportunity to buy more bitcoin. You’ll stack more satoshis if bitcoin traded at $5,000 or $3,000. Andy Cheung, head of operations at OKEx, echoes this view. He told CCN,
I am aware of the fears in the market, especially when the bearish death cross appears on trader’s charts, but I believe this selling pressure is a gift to long-term HODLers.
The crypto exchange executive added,
Looking at drawdowns over time, as a bitcoin drawdown deepens in magnitude, there is an increasing probability for a forward return. It is possible you could see $10,000 by year-end.
Is Andy Cheung giving us false hope? I don’t think so. If there’s an asset that can pull off a massive rally before the end of the year, it’s bitcoin. Robert Beadles, president of Monarch, agrees. He said,
Historically, bitcoin has surged in price towards the end of the year, and this year may be no different.
Jesse Cohen, analyst at financial markets platform Investing.com shares this sentiment. He told CCN,
The bearish sentiment on Bitcoin is reaching extreme levels and that should bode well for the cryptocurrency as we head into what is seasonably its best time of the year. Santa rally isn’t just for stocks.
Bitcoin may dump more or it may resurrect like a phoenix. Whatever happens, forget the noise.
Disclaimer: The above should not be considered trading advice from CCN. The writer owns bitcoin and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.