Analysts Ring in Too Early About Bitcoin
Well, analysts are probably feeling pretty darn foolish for reaching such premature conclusions about where the price of bitcoin will go in the coming days.
The Bitcoin Predictions Came Too Soon
Everybody was super stoked to see that bitcoin had finally broken past its recent $10K resistance. After trading in the mid-$9,000 range for the past few days, the currency rose as high as $10,100, causing everyone to break out the champagne a little too early.
Why too early, you ask? Because the jump only lasted a couple of hours! Bitcoin proved it is still unable to tackle the five-figure range head on, and thus dropped back down to $9,500 in a relatively short period, but prior to this unprecedented move, many analysts went about spewing how this bullish trend was likely to continue into the coming days.
One such analyst to really tout bitcoin early was Mike Novogratz, who explained on Twitter:
$BTC is coiling. It will take out 10K soon. All the tragic turmoil in the USA adds to the narrative. Budgets are going one way and it’s the opposite of balanced. When 10K goes, it will move fast. Get on the train.
Another analyst to immediately jump on the bull bandwagon was Mati Greenspan, the founder of Quantum Economics and a former analyst at e-Toro. In an interview, he comments:
The risk-on attitude and all the Fed stimulus is a huge tailwind for bitcoin and the entire digital asset space. If the Fed breaks down, or if there is an erosion of trust in government-issued currency, then crypto assets may be used as a failsafe… Bitcoin, of course, cannot simply be printed. Indeed, it is living up to its reputation as ‘digital gold.’
There’s just one big problem with all these thoughts and predictions… They came too early. The bitcoin price briefly rose to $10K and stayed there for what felt like no time at all in the fastmoving world of cryptocurrency, so anyone who thought that this was going to last is probably kicking themselves in the head right about now.
Maybe This Will Resolve Itself
Of course, the arena of bitcoin is often a strange and unpredictable one. For all we know, this little setback is just that… a setback. Bitcoin experienced fear in trying to hit $10K again and had to step away for a bit to compose itself. Maybe we’ll all wake up tomorrow and see that the coin has once again entered five-figure territory, and this was all a fluke of some sort.
It’s not like bitcoin hasn’t exhibited this kind of behavior in the past, so for now, perhaps all we can do is wait and give good vibes to the currency we’ve all grown to love and appreciate.