Bill Baruch, the President and founder of futures and commodities trading firm Blue Line Futures, has written an in-depth analysis of Bitcoin’s price, published on CNBC today. Baruch noted that the cryptocurrency’s volatility has decreased in the last few days. Compared with the annualized volatility of 150% last year, 61% appears to show that the price may finally hit bottom. ‘Bottoming’ means that the price of an asset has reached the lowest value in a given time period. However, right after a cryptocurrency bottoms out, the price starts moving on an upward trend.
After the launch of futures contract and increased crypto hype in mainstream media, Bitcoin crossed $19,000 in December 2017. However, only a month later, BTC’s price dropped below $11,000. The price reached $6,300, an all-time low, in February 2018. Explaining the reason behind these shocking values, Baruch wrote:
There was tremendous speculation, and a sort of fear-of-missing-out trade sent prices skyrocketing too high, too quickly. The sell-off since then has wiped out most, if not all, of the over-enthusiasm.
Baruch mentioned that bottoming is a process and shouldn’t be confused with price. Since both volatility and price have decreased, Bitcoin may start increasing in value soon.
“As for the near term, a bottom would occur more quickly and more constructively if the recent low of $6,000 per coin holds,” added Baruch. Under the article, CNBC published a poll asking users whether BTC had bottomed or not. 56% of users have so far voted yes, while 44% believe that it hasn’t.
Last week, Bitcoin was valued at around $6,700 – however, the price reached $6,200 on June 13th. After managing to stay at $6,400, BTC’s price climbed $300 within an hour on June 18th. The value has increased by 1.64% in the last 24 hours, and at the time of writing, BTC is worth $6,717. All of the top 10 cryptocurrencies are also in the green; indeed, TRON has increased by a staggering 11.26% within a day.
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