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Bitcoin Appears To Be Stabilizing Following Winklevoss ETF Failure
From Taki Tsaklanos: The price of Bitcoin lost some 25 percent in two weeks time. It collapsed from $1240 to $980 very rapidly as the Winklevoss Bitcoin Trust ETF (NASDAQ:COIN) failed to receive SEC approval, only to bounce back and stabilize at current levels around $1060.
Bitcoin has followed a quite straightforward path higher since the summer of 2015. The price rally accelerated towards the end of last year. At the start of the year, we clearly saw that prices were rising too fast, which is when we forecasted a correction to the $800 level after testing all-time highs at $1050. That was exactly how it played out, as documented in this article: Bitcoin Correction Achieved First Target.
The recent mini-crash of Bitcoin is good news, in the sense that parabolic rises never last long. Investors prefer to see a steady rise. We wrote in our recent Bitcoin Price Forecast For 2017 that “we hope there will be a healthy correction sooner rather than later, to cool off emotions. Ideally, bitcoin’s price corrects to the $1000 to $1100 area in the coming weeks.” Again, that is how it played out.
We remain confident that, fundamentally, the picture for bitcoin looks good. This is not only a market for speculators anymore, but one of real users. Our $2000 forecast for 2017 or 2018 remains valid.
From a bitcoin price analysis point of view, the long term chart continues to looks constructive. Investors follow closely what Bitcoin does around current price levels, as this is the 2013 peak. If Bitcoin succeeds in creating a support zone around current prices, it would be incredibly bullish as former resistance (2013 peak) would become support.
This article is brought to you courtesy of Investing Haven.
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