Guys as we all know bitcoins first half was very bad. It started in 2018 with a spike above the USD 17,000 level. However due to a lot of negative market news and other external factors it faced heavy selling interest. As a result, it faced a bearish wave and tumbled by more than USD 10,000. In Feb. 2018, it fell till USD 6,000 and again corrected above 10,000.
This upward trend was capped by USD 12,000 and then again resumed its downtrend. During past few months, the price traded with a bearish bias below the USD 10,000 resistance level. On the positive, there was no substantial decline below the USD 6,000 support area. Recently, the price traded towards the USD 5,650 level but jumped back above USD 6,000.
So now I feel the USD 5,500 - USD 6,000 is a crucial support and bitcoin can make an attempt to recover during the coming months. I think it will go slowly from 6,000 to 9,000 USD and then take a jump back to USD 12,000 to USD 15,000.
Meanwhile, last week, Mohamed El-Erian, chief economic advisor at Allianz, an insurance giant, told CNBC that bitcoin would be a buy if the price falls below USD 5,000. El-Erian sees bitcoin emerging as more of a tradeable commodity than a currency, but doesn't expect it will get all the way back to USD 20,000.
What are your views on this?
Do share your thoughts in the comment section.