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Bitcoin's Inflection Point Has Arrived by Victor Dergunov

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Summary

  • Bitcoin is down by over 50% from its summer's highs and is now hanging around a critical support level of $6,500.
  • The world's favorite digital asset appears to be losing its popularity for various reasons.
  • It's not just Bitcoin, most of the popular digital assets are down by 60% or more from their summer highs as well.
  • However, this is likely a temporary phenomenon, and Bitcoin's price could be nearing a reversal point as we are still in the midst of a bull market wave higher.
  • Bitcoin is likely to appreciate substantially over the next 2-5 years and could reach a price of roughly $50K-$100K as its next wave tops out.
  • This idea was discussed in more depth with members of my private investing community, Albright Investment Group . Get started today »

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The Inflection Point Is Here

Bitcoin (BTC-USD) is at a crucial inflection point, as it is currently trading around its critical support level of $6,500. Bitcoin and the cryptocurrency market in general have been in a slow-motion meltdown mode after Bitcoin hit a high of roughly $14,000 in late June. Since then, Bitcoin has lost more than 50% of its value and may be headed even lower if this critical level of support at $6,500 fails.

Source: Binance.com

Nevertheless, despite the recent volatility, Bitcoin and other systemically important digital assets have a strong probability of recovering from current levels, likely have very limited downside from here, and should appreciate significantly in future years.

Technically Speaking

Source: BitcoinCharts.com

Technically speaking, Bitcoin's short-term image does not look particularly encouraging, as we see Bitcoin making a series of lower lows and lower highs following the summer's top-off at $14K. The good news is that Bitcoin has deflated from an extremely overbought level and is now trading around critical support of $6,500. The bad news is that if the $6,500-$6,000 support level fails, Bitcoin could plausibly fall through to $5K or lower. Nevertheless, I see a stronger possibility of Bitcoin stabilizing and bouncing off from current levels. Thus, a trend reversal from current levels appears likely in my view.

Temporarily Losing its Popularity So, what is going on? Why is Bitcoin seemingly moving perpetually lower in recent months?

Several elements appear to be in play here, but one of the primary reasons appears to be that Bitcoin may be losing its "popularity". While this is a temporary phenomenon in my view, it is leading to decreased volume and lower prices.

...Read the Full Post On Seeking Alpha

Author Bio:

Steem Account: @victordergunov Seeking Alpha Account: Victor Dergunov Twitter Account: @victordergunov

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