Since December 2017, many Bitcoin followers have been wondering when this cryptocurrency will experience another run-up. Since the inception of virtual currencies, Bitcoin has been the pack leader.
Unfortunately, it’s been a couple of months now and Bitcoin has not even crossed the 15k border yet.
Bitcoin is not the only cryptocurrency currently experiencing a downtime. All other crypto coins have been bleeding more with a day or two of green. For those who bought in before the start of November, there may be very few or even no losses.
However, those who bought Bitcoin during the splendid all-time highs of late December may have to wait for better days to show up.
What could have led to this slump?
There are many theories put forward by speculators, analysts, and common crypto folks as to why Bitcoin and other cryptocurrencies took a retracement trip. Here are some of them:
- The holiday season
The love we have for those around us means as holidays approach, we start preparing to make them happy. We decide to take them for a nice trip or buy them the best gifts money can buy.
Towards the end of December, there are countless holidays lined up throughout the world from Christmas, Hanukkah, Kwanzaa and the New Year. This tends to be a painful time for banks, savings accounts, and investments as all profits are usually pulled out.
Realistically speaking, not many of us can walk into any shop and buy goods using Bitcoin and other cryptocurrencies. Therefore, as the holiday drew close, it made sense for many people to liquidate them and use the cash.
- Alleged Coinbase Insider trading
A few minutes after Bitcoin Cash was listed on Coinbase, its price went bonkers from $1k to $8k all within an hour. Suspicions of insider trading were raised and Coinbase temporarily suspended all trading in order to investigate.
Although BTC resumed trading the next day, it is said that many people were not happy with how some individuals use their positions to control cryptocurrency prices to their whims. Since this happened at the same time prices started taking a nosedive, it is believed this incident could have been a contribution.
- Increased preference for other coins
Following Bitcoin’s remarkable success, many investors saw a window for more profits by investing in other highly competitive upcoming crypto coins such as Cardano, Tron, Ripple and a few others. These investors pulled their profits from Bitcoin and invested in altcoins.
By doing that, they unintentionally destabilized Bitcoin’s market share creating a price slump. Since this currency’s success and failure is tied to other virtual currencies, each member received a blow and the whole market was quashed.
- Market manipulation
A Bloomberg article on December 8th 2017 reported that over 1000 individuals own 40% of all bitcoins, and if there is anything that makes small investors knees knock, it’s whales. If these individuals act in unison, they can make the market prices dance to their own tune.
You need to understand that these folks acquired Bitcoin many years ago when others still considered it a tiny bubble. They have been patient for a long while, and any time one or several of them cash in the prices tank.
- Looming regulation
This is perhaps one of the biggest challenges cryptocurrencies are currently facing. Countries around the world are taking turns announcing an intention to clamp cryptocurrencies down.
China was the first one to ban all ICOs followed by South Korea, Russia, Japan, Britain, and Singapore all hinting at possible cryptocurrency clampdown.
The good news is that most of these countries have not acted on these threats, possibly due to the obfuscated nature of their existence.
So is it possible for the price to go over 20,000?
Most Bitcoin evangelists and proponents believe that this coin has many more milestones to achieve. According to Michael Novogratz, a cryptocurrency millionaire, Bitcoin could easily hit 40k by the end of 2018.
An individual who goes by the username of “Cryptoguru” on Reddit perhaps offers the best illustration of why people should stop selling their Bitcoins just because the price is tumbling.
He firmly believes that this pack leader and other cryptocurrencies still have a long record to accomplish. Look at the screenshot below and notice how nicely he puts things into perspective.
Tom Lee, a co-founder at Fundstrat Global Advisors is another individual who believes that Bitcoin’s ATH (all-time high) may double or triple in 2018.
Tom has a history of accurately predicting Bitcoin behavior. In August 2017, he foretold that the currency would soar above 10k. It did exactly that and even went all the way to 20k before the correction phase kicked in.
This year, Lee believes that Bitcoin may hit new all-time highs and just chill there since millennials plan on replacing it with gold.
“I think Bitcoin is still something you should own” - Tom Lee
It’s not just Novogratz, Tom Lee and Cryptoguru who have high hopes for Bitcoin hitting new ATHs.
Julian Hosp, a cryptocurrency entrepreneur believes it is the best time to buy any cryptocurrency. According to Hosp, crypto winter is not coming anytime soon, and if it comes, Bitcoin will have tasted the 60k zone.
Long-term technical signals also indicate a bullish bounce could be imminent for Bitcoin.
Apart from word of mouth from Bitcoin prophets and evangelists, technical signals show that this pioneer cryptocurrency has a probable bullish movement in the coming months.
At the moment, the price of Bitcoin appears to have found peace between 8k and 9k after dropping to almost 5k early this year.
So what’s the bottom line?
From the explanations provided above, one thing is clear; Bitcoin will hit $20,000 and go even higher than that. Cryptocurrencies in general and their underlying blockchain technology are not going anywhere anytime soon.