- Bitfinex traders long on not only Bitcoin but also on Ethereum, XRP, and EOS
- Even if Bitcoin climbs to $9,000, it won’t be out of the woods because “bear markets have rallies too”
- Mayer Multiple is sitting at 0.75, which is lower than 84% of history
It’s been over two weeks that Bitcoin has been stuck with the world’s leading cryptocurrency still trading at $7,086.
Today, however, has been a big day for BTC. Exactly a year back, on Dec. 15th, Bitcoin found its bottom at around $3,200 after crashing from its all-time high $20,000, losing 84% of its value.
Since hitting that bottom, Bitcoin is up about 122% and in the first half of the year it even went to $13,900.
However, while BTC is up about 87% in 2019 to date Ethereum is up only about 4.50%. XRP meanwhile is the biggest loser of 2019 among the top 10 cryptos at almost 40% losses followed by EOS which is down by 1.60% YTD.
December 2018: miserable in the $3xxx’s
December 2019: miserable in the $7xxx’s#bitcoin
— Alistair Milne (@alistairmilne) December 14, 2019
In the short term, analyst Magic Poop Cannon says even if we see a rally here, Bitcoin remains in a bear market downtrend. “Bear markets have rallies too,” he explains.
Bitcoin, he says is in a technical bear market and until we see higher highs and higher lows, the trend remains bearish. This holds true even if BTC rallies to $9,000.
Though he isn’t sure how low Bitcoin will fall here he warns BTC bottoms might be much deeper than expected.
Mayer Multiple says Stack some Sats
Bitcoin might be boring right now but it is the perfect time to stack some sats, according to Mayer Multiple.
The Mayer Multiple is the ratio of the Bitcoin price to its 200 days moving average which is a measure of the deviation of BTC price to its long term trend.
Currently, Mayer Multiple is sitting at 0.75, which is lower than 84% of history. A historically low value of Mayer multiple indicates that Bitcoin is cheap relative to its long term trend meaning it is a good time to buy the crypto asset.
This time to stack some sats is warranted because when the market is in fear and there’s blood on the street, that is the time for you to get in.
The market is in extreme fear right now with the Crypto Fear and Greed Index giving a reading of 21 on a scale of 1 to 100, where a value of 0 represents “Extreme Fear” while a value of 100 means “Extreme Greed.”
We are going to $100,000
With the predictions of $100k floating around, it makes sense to ensure that you are in before the next bull market starts.
This week another person joined the $100k BTC price prediction list, Ross Ulbricht, the founder of the now-defunct dark web marketplace Silk Road.
In his six-part blog published from letters he wrote in prison, Ulbricht applied Elliott Wave Theory to predict BTC price. The theory forecasts the highs and lows in the market cycles by identifying the changes in investor sentiment and psychology.
Per this theory, “We have a price target… of ~$100,000 some time in or near 2020,” he wrote. “However, there is no rule that market moves have to be proportional. This is just a patter we see unfolding that may or may not continue.”