Staunch Bitcoin Critic: BTC Price Likely to Hit $5K Soon

reutersmedia.net

A popular Bitcoin and cryptocurrency critic predicts that Bitcoin may likely reach the $5,000 mark very soon, despite downwards spiral it has taken lately.

The prediction comes in the wake of Bitcoin’s failure to stabilize above the $4,000 level which signifies that the market will experience more losses before it reaches the $5,000 level.

In an interview with CNBC, DoubleLine Capital CEO Jeffrey Gundlach, a staunch Bitcoin critic, emphasizes that investors who have a “high tolerance” for risk can still collect easy profits if they want to trade Bitcoin.

While the comment appears to be rather optimistic, it is crucial to remember that the man is a vocal critic of digital currency. Previously, Gundlach advised investors to “get the heck out of Bitcoin.” He clarifies:

“I don’t recommend anything with bitcoin, really … but if you really want to speculate, I think it could make it to $5,000. Talk about an easy 25 percent.”

Analysts think that Bitcoin is in the middle of a wide trading range between $3,000 and $5,000. This corroborates Gundlach’s analysis that Bitcoin can easily close the price gap soon. However, the question remains whether cryptocurrency bulls have the power to cause sufficient upwards momentum enough to push Bitcoin’s price above the level.

In a recent market update, eToro senior market analyst Mati Greenspan explains:

“If we zoom out…we can see that the overall range that we’re in is from $3,000 to $5,000 per coin… So we’re now at the halfway mark in the middle of the broader range.”

While Bitcoin can easily be pushed to the $5,000 level really fast, one market index is now ranking the crypto markets as “moderately bearish” this year.

SFOX Multi-Factor Index describes that the digital currency market’s present bearishness is a result of a combination of the markets’ volatility last year, which carried over into 2019, and FUD, brought about by the tightening regulatory crackdown implemented by various governments.

The index utilizes several factors which include “volatility, market sentiment, and continued advancement of the sector” in order to ascertain market conditions ranging from bearish to highly bullish.

Notably, the index identifies Bitcoin Cash and Litecoin as two of the most volatile top altcoins for 2018, while Bitcoin is one of the least volatile. The volatility is mainly a result of the astronomical rise and subsequent crash the assets suffered in early 2018.