· April 14, 2018 · 12:30 pm
Crypto Hedge Fund: Bitcoin Price Reached its ‘Probable Low’ at $6,500
Pantera Capital Management, a crypto hedge fund with more than $800 million in assets, shares the positive view of some Wall Street analysts and crypto advocates in that the bitcoin price has reached its “probable” low at $6,500.
Breaking the 200-Day Moving Average
Public price predictions and recommendations have never been a preference for Pantera Capital Management. The fund’s investments came to light in 2014, but it has only made three buy and one sell recommendations for the last seven years. If there’s one thing that this signals, it’s that Pantera is particularly careful and far from being reckless in their public statements.
Yet, the new after the largest cryptocurrency crossed its 200-day moving average. To shed some clarity on this, the fund explains:
Traders often use that time period as it seems to be the optimal response time of human psychology,” it says, adding “Long enough to stop fretting about missing the trade. Not too long that the information is lost.
Needless to say, all bitcoin investors are wondering what the bottom is during this rampantly bearish market for the first quarter of 2018. According to Pantera, bitcoin’s price has already bottomed out, reaching its “probable” low at $6,500.
Spreading the Love, Carefully
Understanding the weight of their statements, Pantera CEO Dan Morehead and Co-Chief of Investment Officer Joey Krug share their positivity in a rather careful manner, saying:
For those who are new to Pantera who might think a fund manager like Pantera would always be saying ‘Today’s a great day to get long.’ I rarely have such strong conviction on timing. A wall of institutional money will drive the markets much higher.
And while Pantera seems firm on the fact that institutional cash pouring into the crypto market shall drive the markets “much higher,” another Wall Street strategist, Fundstrat chief Tom Lee, for which bitcoin’s price is to hit $25,000 by year-end.
And while their prognosis is slightly off by a few thousand bucks, Pantera also seems to hold that bitcoin’s price is to “exceed $20,000 within a year.”
At the time of press, trades at $8,083.30, marking a 0.30% increase for the last 24 hours but a massive over 12% spike in the last 3 days.
Do you think the worst is over for bitcoin? Please let us know in the comments below!
Images courtesy of Bloomberg, Pixabay, and Bitcoinist archives.
Published at Sat, 14 Apr 2018 16:30:11 +0000
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Bitcoin Price Analysis: Choppy Market Conditions Lead to Tests of Parabolic Resistance
The bitcoin market has been getting chopped to pieces for weeks as the market has faked up, faked down, consolidated and routinely stopped out traders. Last week, we discussed a due to a consolidated symmetrical triangle. However, the breakout failed to garner any momentum and ultimately flopped as the move upward quickly died down and ultimately reversed.
At the time of this article, however, the market is poised in a precarious situation as it tiptoes around historic support/resistance along the parabolic envelope:
Figure 1: BTC-USD, 2-Hour Candles, Parabolic Curve Test
As noted in previous bitcoin analyses, this parabolic envelope has been the dominating trend for the last three years:
Figure 2: BTC-USD, 1-Day Candles, Macro Trend
Over Thanksgiving, the parabolic trend that was previously governing much of the three-year bull market broke upward as the market’s parabolic movement accelerated aggressively upward. Since the break to the top of the parabolic envelope, the market has been on shaky ground where, at one point, it even did a massive 50% retracement. Since that aggressive retracement, the market has yet to fully recover and resume any semblance of a bullish continuation. Currently, the once-supportive parabolic curve is now proving to be a point of resistance as the market has made several tests of the upper resistance.
To date, this marks the fifth test of the parabolic trend. This time, however, we are testing it from the bottom of the parabola. Previous tests from the top side of the parabola were swiftly rejected causing very little market activity to take place below the parabolic trend. It seems, yet again, bitcoin is at a crossroads as it decides if the upper parabolic resistance is too strong to resume an uptrend.
If the market continues downward, we can expect to find support along the low boundaries of the trading range (shown in blue), the linear trend (shown in pink) and the lower parabolic curve (shown in black):
Figure 3: BTC-USD, 2-Hour Candles, Next Lines of Support
Summary:
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Choppy market conditions have led bitcoin to test the parabolic support — a previous guiding trend for the last three years.
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A failure to break the upper parabolic resistance may cause a test of lower values.
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Support will be found at the lower ranges of the trading range and along the linear and parabolic trend lines.
Trading and investing in digital assets like bitcoin and ether is highly speculative and comes with many risks. This analysis is for informational purposes and should not be considered investment advice. Statements and financial information on bitcoin Magazine and BTC Media related sites do not necessarily reflect the opinion of BTC Media and should not be construed as an endorsement or recommendation to buy, sell or hold. Past performance is not necessarily indicative of future results.
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