Bitcoin Expert Says: 2018 Drop Was ‘Normal,’ – New Highs Will Follow
The bitcoin expert and senior market analyst at eToro, Mati Greenspan, explained that Bitcoin’s behavior is completely normal and that after reaching historical highs of around 20k a drop like the one seen during the first quarter of 2018 was to be expected.
In an interview for The Express Mr. Greenspan mentioned that technical analysis better explains the reasons for the fall in Bitcoin prices than fundamental analysis.
“I believe that more than fear of regulation that decline from the 20,000 peak was more of just a normal retracement.”
Mr. Greenspan is a fervent advocate that markets move in trends and cycles, so a behavior as bullish as that seen during the last quarter of 2017 could only have a subsequent bearish after-effect. For him, this type of “retracement” had already occurred on previous occasions, to give rise to a greater bullish impulse later:
“Whenever the price moves and jumps into a new order of magnitude, we need to see some sort of retracement on that. It’s the same thing that when it jumped up from eight cents to $3.50, then it had a retracement back to a dollar, that’s a very normal thing after that kind of leap. So if we look at it now, I believe we are about five or six percent up over the price a year ago.“
For Greenspan, expectations are very high. According to his comparisons, Bitcoin is in a better position today than in previous years, which “without a doubt” implies a reasonable probability that bitcoin will beat last year’s all-time high.
According to technical analyses, bitcoin is showing a breakdown of what is known as a “triangle pattern” – a market behavior in which dips get higher up and peaks get lower and lower.
Analysts define the triangle pattern as a search for equilibrium, meaning that when this figure is broken, or when the apex is reached, the path taken represents a strong future trend.
In the case of Bitcoin, it is clear that that the market’s behavior broke the triangle on an upward path. This could be a good start towards fulfilling the forecasts of Mr. Greenspan, who, despite his bullish statements, did not cease to be conservative, saying “I don’t know what’s going to happen in the future. I’m really not a fortune teller or anything like that.”
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