The price of bitcoin has been see-sawing since hitting the $13,000-mark in late June as traders believe that the cryptocurrency could witness a significant pullback in the 30 percent to 40 percent range. But one analyst believes that it would be a good idea to buy bitcoin futures if the crypto asset witnesses such a major pullback.
John Kolovos, chief technical strategist at New York-based Macro Risk Advisors, told Bloomberg in an interview that bitcoin is currently undergoing a correction, but not a trend reversal. He said:
“My sense is start looking for stabilization for bitcoin between $9,000-$8,500, closer to probably $8,500, for a resumption in uptrend probably back to the old highs. I would stop myself at out around $8,000.”
But the good news for bitcoin bulls is that Kolovos didn’t stop there. He went on to say that bitcoin is headed higher in the long run and could reclaim its old highs of around $20,000. This is why Kolovos advises bitcoin investors to buy the pullbacks in the price of the cryptocurrency, especially at the $8,500 mark because that’s where he expects it to stabilize.
The bitcoin price has been caught up in a stalemate as the bulls and bears seem to be confused where the cryptocurrency could be heading in light President Trump’s comments. But investors should not forget that the price of the crypto asset was been prone to wild swings in the past.
Crypto trader Josh Rager points out that the price of bitcoin surges more than 153 percent after facing a 30 percent-plus pullback.
$BTC: Reward of buying pullbacks
Previously examined how Bitcoin often experienced 30%+ pullbacks during last uptrend
But we didn't discuss how buying these pullbacks can reap rewards
The average gain after a 30%+ pullback was over 153% profit before the next strong pullback pic.twitter.com/vy08Dx5XbU
Assuming that $13,000 was the highest point before the current pullback arrived, the price of bitcoin could fall to $9,100 before it starts rallying again. Bitcoin hasn’t tested that mark just yet, so Kolovos’ thinking that the cryptocurrency will fall once again before stabilizing might be true.
And if bitcoin actually falls to as low as $8,000 as Kolovos sees in the worst-case scenario, a 150 percent plus rally will put the price of the cryptocurrency at $20,000.
But don’t be surprised to see the digital currency break beyond those levels. That’s because Rager suggests that each bitcoin bull cycle is longer than the previous one.
$BTC Bull Market Cycles
As you look at the historical cycles on the Bitcoin chart, you will notice that each bull market cycle exceeds the length of the previous uptrend
Don't worry about pullbacks, Bitcoin is likely less than 1/4 into the current uptrend to the next peak high pic.twitter.com/CCesZphBWD
— Josh Rager
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