Published: 2018-10-29 14:25:31
At the back of super low volatility, the market is overly expectant of further gains once the bottoms are hit. Tim Draper is back at it again insisting that BTC will test $250,000 by 2022 because the coin is just a better, global and transformational currency that will gradually replace fiat.
Latest Bitcoin News
Apparently, recent Bitcoin price movement point to a stable market. A market that is ready for institutional involvement. It should be noted that in January, it was not unusual for Bitcoin prices to move upwards of $4750 or by +/-40 percent on a weekly basis. That is now changing and in the last few months, Bitcoin prices have been so subdued with recent finding indicating that Bitcoin volatility is lower than that of Netflix and Amazon whose 20-day volatility exceeds 35 percent.
Many analysts are now speculating that because of this super low volatility and tapering standard deviation, high net-worth and institutions will funnel their funds into Bitcoin steadying price as a result. Besides the deep liquidity and stability that is associated with investment, long term coin holders are poised to benefit as speculators scuttle at the face of dropping Bitcoin prices.
Talks of a bottoming market also triggered Tim Draper, a known Bitcoin bull and ambassador to reiterate his stance that Bitcoin will print $250,000 by 2022 because Bitcoin is simply a better currency based on mathematics, verifiable and whose 100-year inflation outlook is known.
Bitcoin he said will continue to “eat up” the $87 trillion fiat market share as volatility decrease and people realize how transformational, global and decentralized the technology powering it is.
Bitcoin (BTC) Price Analysis
BTC/USD Weekly Chart
Overly, Bitcoin prices are tepid and moving inside a tight $350 range above the main support line at $6,000. If anything, we shall retain our last price outlook expecting BTC to recover and surge above important resistance levels at $7,000-$7,200 and the main resistance trend line which has been an efficient liquidator in the last 10 months or so.
Moving on, we should note that the reduction in price volatility following more than 75 percent drops from 2017 peaks are indicators of lower time frame accumulation which could pave way for bulls as set by week ending Oct 21 break out.
In any case anyway, we maintain a bullish outlook thanks Oct 15 price spikes which at one point drove prices above key resistance levels igniting buys in the process. Though prices did correct, odds are prices will snap back to trend confirming our projections.
BTC/USD Daily Chart
In this time frame, the stability of the last two weeks is evident and here BTC/USD prices are moving inside Oct 15 high low as volume tapers. This is an indication of bulls first because of the lack of momentum to reverse Oct 15 gains and secondly because of volumes which are drying up.
Now, as long as BTC prices are trading above Oct 15 lows at $6,200, aggressive traders can begin buying on dips in lower time frames with first targets at $7,200 and later $8,500 in line with our last BTC/USD price forecast.
Conversely, dips below $6,200 nullify this projection and could potentially lead to losses below $6,000 triggering an unwanted wave of sell pressure further adding to this year losses.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.
The views and opinions expressed in the article Tim Draper Says BTC to $250,000 by 2022 do not reflect that of 48coins.com nor of its originally published source. Article does not constitute financial advice. Proceed with caution and always do your own research.