Monfex’s Analyst offers more support for a Bitcoin bull market
According to its TradingView profile,
trading platform Monfex is echoing the general market sentiment by offering a strong buy signal for Bitcoin. Bitcoin is currently just below $8k USD, down from a 30 day high of $8,300 USD on May 16, 2019.
Bitcoin finally seeing daylight
These numbers follow an extended bear market for Bitcoin. This pattern included a nearly five month trough, where BTC struggled to stay above $3,000 USD. 2018’s dismal cryptocurrency market followed an extended period of exceptional growth for cryptocurrency. Led by Bitcoin, cryptocurrency saw unprecedented prices and industry expansion. While prices decreased over 2018, overall industry growth showed no signs of slowing.
Therefore, for dedicated cryptocurrency enthusiasts and investors, recent upward momentum in the charts is merely a sign of technological advancement and increased traditional market visibility. However, this upward price momentum continues to elicit excitement and anticipation amongst the most seasoned cryptocurrency traders. Will it is particularly good news for those with a specific stake in Bitcoin, trends within BTC and ETH have historically led the entire digital currency market.
The numbers don’t lie
Monfex analysis signals a strong buy based on careful technical analysis. Their TradingView profile includes analysis of these predictions. One post in particular outlines a long view trading strategy based on a combination of technical and market factors. One of the first things Monfex notes is that Bitcoin is currently overvalued as a short-term investment. This is based on a significant deviation from its mean value. Mean value is calculated based on a 20-day moving average and a linear regression channel. According to these indicators, Bitcoin should be valued between $7,000 and $7,500 USD. It currently sits at about $7,990. This price is $400 below the May 16 high, but also $400 above the central tendency.
A more recent Monfex post offered an updated point of view. Rather than predicting a slight correction, analysts instead suggested several weeks of flat charts through the end of May. Following this pseudo-correction, strong upward movement to the next plateau is expected. According to Monfex analysts, traders should buy in at $7,400. At this price, they should not anticipate another strong resistance level until about $11,500. This resistance level is a good time to sell. Monfex uses this price as a Take-Profit marker.
Other outlets express continued concern over Bitcoin’s viability as a long-term trading option. The primary challenge many analysts see for Bitcoin is its inability to move beyond an investment opportunity into the world of payments. Other experts disagree with this point of view. Even cryptocurrency entrepreneur and visionary Tyler Winklevoss has no qualms comparing Bitcoin to gold in terms of its investment potential.
Tom Lee and Tim Draper both share similarly maximalist opinions, regardless of the state of Bitcoin’s widespread use case. Lee offers 13 key indicators that the bottom of the current cycle is over and the time to buy is now. Venture capitalist and fiat market expert Tim Draper shares similar views, and an even higher Bitcoin price prediction. JPMorgan, however, warns that a continued bear market is not out of the realm of possibility. Noting eerie similarities to the 2017 bull run on Bitcoin, JPMorgan Chase analysts express concern over its unexpected April performance.
Bitcoin prices surged 100 percent, driving the token out of an extended through that lasted over 5 months. The recent surge is likely the result of multiple factors, including international trade relations, particularly between the U.S. and China. Other considerations could be the Consensus conference, particularly its depiction of a cryptocurrency climate evolving toward increased legitimacy. Bitcoin prices were last above intrinsic value during the height of the 2017 bull run. The comparisons between 2017 and today are not without merit. At around 10 percent, current overpricing cannot be considered moderate.
Why trust Monfex?
Built on Bitcoin and simplicity, the Monfex trading platform is a fresh take on cryptocurrency trading. Appropriate for seasoned traders and beginners alike, Monfex provides an easy to navigate, easy to use platform. For those looking for specific key features in a trading site, Monfex provides the following:
- Bitcoin funded
- Leverage up to 50 times
- Traded against USD
- Currently 12 cryptocurrencies
- Low minimum trade size
- No withdrawal fees/low trading fees (spreads and commissions)
- Cold wallet storage
Proceed with caution
As always, caution should remain at the forefront of any cryptocurrency investment. With just over a decade of history to work from, even the most experienced and savvy of analysts runs the risk of a big mistake. In fact, due to the wide variance in opinions expressed by traders and analysts alike across both fiat and cryptocurrency, the reality is that at least one viewpoint is bound to be very wrong.
Article Produced By
Deb Williams (hodlthrive)