$8K Is Bitcoin’s Next Target, But Will a Plummet to $3K Follow? | Charlie Burton & Clement Ip
Will Bitcoin Continue its Upward Momentum?
Bitcoin has regained market support over $7,000 and seems to be holding. $6,800 to $6,900 was identified as the key support level by Amsterdam based day/swingtrader Michaël van de Poppe.
Charlie Burton had a skeptical view of the current support level in this interview. Stating that he believes the market needs to do more and Bitcoin’s price needs to be above $8,000 before things become significant. But also indicated that the upward price movement is definitely an encouraging sign.
Clement Ip shares the same reservation for the current support level as Charlie. March was a month filled with volatility and a lot of movement. Genesis Block saw a lot of people buy in when Bitcoin’s price dropped to around $4,000. To an extent where we saw queues ramping up at Bitcoin ATMs.
However, in the past few weeks the market, especially in Asia has been quiet. This is largely due to the impact COVID-19 has had on essentially every industry. So despite the price recovery that has happened for Bitcoin since global markets crashed last month. Clement believes that for now, the market is too quiet to move past a support level of $7,500.
Is Bitcoin in the Process of Bottoming?
In a previous interview with Cointelegraph CEO of Coinroutes Dave Weisenberger said that Bitcoin could be forming a bottom at the $6,000 – $7,000 range. Charlie referenced his 20 years of trading when sharing his opinion that this might be a second wave of investors coming in after many ‘big cat’ investors sold last July. Additionally, he mentioned that bottoming would likely be a 12 to 18 month formation process.
Clement shared his concerns with $6,000-$7,000 as a bottom. Even when taking Bitcoin’s 3rd halving event into consideration. His perspective is that we need to see more organic growth in the Bitcoin space in order to drive the price. Adding that there is room for manipulation and other factors that could obstruct the market until we do have more people adopting Bitcoin.
Will Bitcoin Plummet to $3,000 After Hitting $8,500?
Charlie believes that anything could happen. We might not see a huge selloff like what we saw in March. But, there might be a gradual selloff to test the lows. Clement agreed with this sentiment, adding that the Bitcoin community is growing and evolving. People that used to be trading in ICOs are now using leverage to trade on platforms like FTX.
Why is it a Great Time to Invest in Bitcoin?
Unlimited quantitative easing, scarcity of Bitcoin, and the all time high was almost $20,000. These are some of the factors that Clement weighed in on his perspective for why it’s a great time to invest in Bitcoin. The debts that will ultimately come due provide and opportunity for Bitcoin to shine.
Charlie’s opinion was that the combination of a U shaped recovery and printing unlimited money will weaken the dollar. The consequent devaluation of the dollar will drive up the price and demand for assets like gold, but also agreed that Bitcoin could stand to benefit from the situation as well. Both agreed that as cryptocurrencies become more accessible, the market will definitely mature into a different animal.
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