Marios Athinodorou
Independent Analyst
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On the long-term side, we are still technically bullish.
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We may be on a retrace phase ccc
BitMEX Co-founder Arthur Hayes told CNBC in May despite the recent falling of cryptos he will remain bullish because the price of Bitcoin will be around $50,000 by the end of this year.
Even though that the popular cryptocurrency Bitcoin has lost almost 54% of its value Arthur Hayes stated
"something that goes up to [around] $20,000 in one year can have a correction," on "Fast Money" Friday.
"We could definitely find a bottom in the $3,000 to $5,000 range," he said. "But we’re one positive regulatory decision away, many an ETF approved by the SEC, to climbing through $20,000 and even to $50,000 by the end of the year."
The largest cryptocurrency by market cap last week fell under the $6.000 level.
The price of Bitcoin now is around $5.800 which is a very steep decline from last year high that was around $19,500.
Also, the other popular coins also had the same drop this year following the bitcoins sell off, such coins are litecoin, bitcoin cash ripple, ethereum. But Hayes said that Bitcoins volatile nature is what makes the coin so popular among the investors.
He said. "Now that we have more visibility, more people talking about [bitcoin], the time between an aggressive bear market and an aggressive bull market, I think, is going to shorten," he said.
Now on the technical side bitcoin sure has made a huge drop but let us examine the components on the chart to see potentially where Bitcoin may actually go.
If we examine the monthly timeframe based on Ichimoku system we can see that the trend is still bullish despite the recent fall of the coin.
The Ichimoku rules for having a new trend reversal say we need to have the price below the cloud the tekan sen and kijun sen lines must be in a bearish formation meaning that the white line needs to be below the Yellow and to have valid reversal signal the chikou span (green) needs to be below the cloud as well.
So on the long-term side, we are still technically bullish. A possibility that exists is the price to bounce on the 79% of the Fibonacci $4575.80 which is also a level of support.
BTCUSD Monthly Chart
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