This year’s bitcoin price decline has many investors contemplating whether they should scramble for the exits, but that, according to one futures trader, makes now the perfect time to buy.
Writing in a CNBC op-ed, Bill Baruch, president of Chicago trading firm Blue Line Futures, said that he is buying the bitcoin price dip because he believes the flagship cryptocurrency is on the cusp of a 70 percent rally that would restore the bitcoin price to $14,500.
“I am watching a key level at $8,650 and a continued close above that could signal immediate upside potential,” Baruch wrote on Friday. “The next level of resistance is $10,000, and a break back above that should bring further buying to the table, suggesting near-term upside to $14,500, a 70 percent jump from its current price.”
On Saturday, the bitcoin price was trading at $9,130, according to the BlockExplorer price index, which represented a roughly four percent recovery from its previous-day level.
This, notably, was approximately $500 above the $8,650 level, which Baruch believes will be a key indicator of an imminent recovery.
If Baruch’s forecast is realized, it would restore bitcoin to where it was trading at the beginning of January, but it would still be trading well below the all-time high of $19,891 it set on cryptocurrency exchange Bitfinex during the middle of December.
Wall Street strategy firm Fundstrat Global Advisors, however, believes bitcoin will break to a new all-time high by mid-2018 and ultimately surpass the psychologically-important $25,000 threshold by the end of the year.
“It has been a terrible few weeks but the fundamental positive story for crypto remains intact,” Fundstrat co-founder Tom Lee wrote in a note to clients this week, adding that “we think the risk/reward at these levels warrants adding here, even if there is additional downside.”
Nevertheless, although Blue Line’s Baruch is bullish on bitcoin’s short-term prospects, he believes that even better values can be found in the altcoin markets, where there are “cheaper and better technologies within the complex that are positioned for stronger gains.” Specifically, he believes that ethereum, ripple, stellar, NEO, and VeChain could emerge as major challengers to bitcoin within the near future.
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