You might not be an expert at dropping some feline carcasses from massive heights to test elastic potential energies, but they say “even a dead cat will bounce if it falls fast enough.”
The surge in Bitcoin this year has been a significant one, but unfortunately, the surge has been attributed to be a ‘dead-cat-bounce.’ Several analysts believe that it’s a matter of time before we see a nosedive in bitcoin price given that the price has now stabilized.
Precisely, the price of the giant crypto moved from about $3,400 in January to a current $8,700. The move represents more than 120% surge in less than a half-year. Understandably, it’s a rejoicing experience for those who got into crypto early this year, but a long way down for the unfortunate enough that bought the coin on December 2017 when it was at its all-time high.
No Predictive Tools
According to Motley Fool blogger Kevin Godbold, investing in the giant crypto now looks riskier than ever.
But why?
The argument is that the recent surge was as a result of speculators on a buying spree and now that the prices have stabilized, bitcoin is no longer a bargain.
Besides, not even one individual saw it coming. Unlike shares whereby one can project on what to expect, with bitcoin, there’re no predictive tools. What it means is that bitcoin lacks fundamentals to rely on to predict. Perhaps, what one can only use is to study the price chart about particular specular sentiments.
Since January, it has always been about ‘buying begets buying’ increasing speculation. However, once the speculation comes to an end (speculators running out of firepower), a nosedive is more than likely as nothing really has changed for or against bitcoin.
Bitcoin was on a sharp downtrend, and out of nowhere, it has rallied to over $8,500. Now that the price has stabilized, a downtrend is likely to happen, and hence we could have observed only a dead-cat-bounce.
Bitcoin to Vanish
It’s pretty clear that several folks are much bearish about bitcoin. Like Motley Fool bloggers, crypto entrepreneur Craig Wright also has a prediction whereby he believes that sooner or later, bitcoin will be no more – it will eventually disappear.
To support the idea, Wright notes that the reason for bitcoin to disappear is simply because it’s becoming an asset for criminal activities more prominently money-laundering. Nevertheless, whether bitcoin’s surge is bullish or a mere dead-cat-bounce is something that only the time will tell.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.