Mark Dow, a former International Monetary Fund (IMF) economist who famously shorted from $20,000 to its low in the $3,000 range, has said that is “buyable.”
chart. Buyable.
— Dow (@mark_dow)
Previously, Dow that investors would need to “get the f**k” out if the dominant does not recover to the $5,000 to $6,000 range in the near-term, as it may leave the asset vulnerable to a large drop.
bitcoin is Buyable as Dow, Is the Trend No Longer Bearish?
In December 2018, around a similar time when dipped to its 12-month low at $3,122, Dow Bloomberg that he has cashed out the short contract he has maintained since was at its all-time high at $20,000.
He :
“I’m done. I don’t want to try to ride this thing to zero. I don’t want to try to squeeze more out of the lemon. I don’t want to think about it. It seemed like the right time.”
He also added that the fear of missing out, or FOMO, led retail investors to initiate a frenzy over the crypto market.
He explained:
They just saw it was going up and wanted a piece of it. People’s imaginations can run further when they’re not tethered to facts, when they don’t understand the issue. It allowed the bubble to be much larger and much more . I saw the psychological hallmarks of it and there came a point where it looked like the fever was breaking.
Essentially, Dow said that the fundamentals and the basis of the rally at the time were questionable and the crypto market had been rising to levels even industry executives in the sector were not comfortable with.
climbed 20 percent on Tuesday at its daily peak (source: coinmarketcap.com)
Vitalik Buterin, a co-creator of and a respected developer in the community, said in late 2017 that the valuation of the crypto market at $500 billion is difficult to justify considering the lack of progress made by projects and in various areas.
Although the market went onto achieve an $815 billion valuation, it corrected and dropped to the $100 billion region the following year.
But, analysts are now visibly more optimistic towards than in the past 15 months.
Apart from technical indicators such as the two consecutive green monthly candles of and the break out of a crucial resistance level at $4,200, the industry has shown a high level of activity throughout the bear market.
Major financial institutions in the likes of Fidelity, ICE, and Nasdaq have pushed forward with their plans to commit to the market while more conglomerates in key regions such as and South Korea entered the market.
Most recently, it was that Yahoo! -invested exchange is set to launch in May with the approval of Japanese authorities and SBI Holdings, a multi-billion dollar payments giant, announced its entrance into the industry.
Big Question Is, Is the Momentum Sustainable?
According to several , a short squeeze on BitMEX led to the liquidation of over $500 million, which dwarfed the $80 million sell order that was preventing from surpassing $4,200.
Around $500m in liquidations on Bitmex alone, ouch
____________________
chart— Edward Morra (@edwardmorra_btc)
As soon as the asset went past a key resistance level, a short squeeze accelerated the movement.
Similar to how a $500 million short squeeze fueled the momentum of on Tuesday, a strong catalyst or a stimulus will be required for the asset to break out of $5,000.
One key factor in the medium-term trend of would be remaining above $4,000 to secure three consecutive green monthly candles while the moving average indicates a positive near-term price trend.
Generally, technical analysts remain confident in the ability of to initiate an accumulation period as long as the asset remains above $4,200.
Published at Tue, 02 Apr 2019 11:16:48 +0000
