CEO of ShapeShift Erik Voorhees in an interview, expressed his views that bitcoin and crypto price bubbles are a definite part of their chronology. There have been crypto bubbles of immense magnitude in the past, and they have amused crypto analysts who have tried to dig out the importance of these incidents.
The past price bubbles of bitcoin also show us that prices do not matter unless the crypto is strong enough to maintain them. Now that bitcoin has reached up to a recent high of $8,000, Voorhees is anticipating another bitcoin bubble.
There have to be bubbles in crypto because crypto is taking over the world, and it’s not going to just advance 5% a month without end. If it did that, people would start buying it up and frontrunning it and turning it into a bubble. So there’s no way to go from a zero dollar asset to one that is worth trillions without massive speculation and massive volatility and cyclical bubbles.
Voorhees is of the view that the crypto market is not always bullish in a regular pattern, lets say increasing by 5% on a monthly basis. He said that there are bearish trends as well which is why bubbles happen after a certain time. Bubbles appear when people buy bitcoins, reserve them and then sell them, creating a rush of people who want to buy them.
READ ALSO: After $10k Bitcoin (BTC) Price, ‘FOMO’ Will Make it the Biggest ‘Crypto Bull Run’
The bubble logic means that bitcoin shoots up for a rather short period of time and then turns dormant again as the prices fall down. The host of Crypto Trader, Ran NeuNer, has previously stated that if the bitcoin was a bubble, we wouldn’t have seen its resurgence at all. While this seems to be closer to truth, several critics have jumped in claiming that the bubble logic fits when we take several intervals out of bitcoin price chronology.
The critics calling bitcoin just a bubble in their publications do not hold water at all and I don’t have any respect for this opinion. Let’s say bitcoin WAS a bubble, it couldn’t have popped twice.
NeuNer, a bitcoin maximalist, claims that bitcoin is a healthy market and is worth investing in. He further clarified that we have seen bitcoin emerge from the darkest of times, witnessed a bear market and then booming to the strongest of bullish behavior. This is not what a bubble refers to at all, as per NeuNer. The reason behind NeuNer backed bitcoin is that even after the longest bear market of recent times, bitcoin is now shooting up. The cryptocurrency has reached to recent highs of a little over $8,000 with speculations that there is another bull run on the way.
READ ALSO: ‘Millennials Love Bitcoin’ But They Should Learn About Gold ‘Love Trade’
There have been four bubbles in bitcoin’s history till now, according to Barry Silbert, founder and chief executive officer for the Digital Currency Group. The first can be tracked back to 2011 when the bitcoin price surged to $31 and then fell down to a low of $2. The second bitcoin bull run witnessed bitcoin jump to $259 and fall down to $45. The third bitcoin bull run saw the crypto’s price surge to $1,141 and collapse to $152. The last bull run happened in the fourth quarter of 2017 when bitcoin sent the whole world into a frenzy by reaching $20,000 price point, but later struck to a low of $4,050. If we look closely at the crypto bubble pattern, we can notice that the high point in price keeps getting considerably greater, which is a good sign for traders.
READ ALSO: 3 Reasons Why 2019 Bitcoin (BTC) Bull Run Will be Longer
Bubbles benefit several entities ranging from investors to a normal user. Whenever a bubble appears, it is the best time for investors and public to invest and jump into the crypto market. However, bubbles also happen to appear when a crypto is either weak or is facing scandals or scams. Bitcoin bubbles happened mostly because crypto reforms are still undecided, with people wondering about the future of bitcoin. Nevertheless, bubbles also bring newer heights as they allow cryptos to find a new direction and attain stability, weeding out the weak points.
READ ALSO: Bitcoin (BTC) Comeback to $8000 Signals a Crypto Bull Run
Bitcoin has reached the highs of $8,000 recently, sparking speculations that another bubble is on its way. The next few weeks are going to be very interesting for the crypto world as it might just set a new direction for bitcoin.
Bitcoin Cash market overview: BCH/USD lethargic bullish momentum stalls at 61.8% Fib level
- Bitcoin Cash remains bulls despite the confrontation at $330 resistance.
- Several support areas are ready to prevent declines from paralyzing the bulls.
Bitcoin Cash failure to break above $360 during the trading sessions last week. This left a gap that the bears wasted no time exploring. BCH/USD bearish action trimmed the gains first below the moving averages. The tentative support around the 38.2% Fib retracement level taken between the last drop from a high of $358.16 to a low of $267.35 close to $300.
The negative volatility surged sending Bitcoin Cash briefly under $270. A low established at $267.35 allowed the rebound above $300. The battle to break the resistance at $330 is yet to be won. Instead, Bitcoin Cash is trading sideways in a narrow range between the confluence created by the 50% Fib level and the 50 Simple Moving Average (SMA) and $330 hurdle.
Several support areas are ready to prevent declines from paralyzing the bulls. They start from the above-mentioned confluence, $310, $300 and $290.
The trend is still inclined to the positive despite the inability to break above $330. The full stochastic oscillator brushed shoulders with 70. However, a possible retreat is likely to signal a reversal.
BCH/USD 1-hour chart
Bitcoin Cash Price Analysis: BCH Records 9% Downtrend in 7 days Trading Below $310
- BCH may go bullish to climb upto $350 again in the next 2 weeks
- BCH may close today at $310 or above
The last 7 days have been a bumpy ride for the BCH token holders especially when the coin slumped steeply from $357 to $276. But, this may change soon and it may rise upto $350 again in the next 2 weeks of this month. The current market statistics also indicate a surging trend ahead when the coin may also cross $350 value for a brief moment.
BCH to USD Price Statistics:
In the last 7 days, BCH token has recorded a downtrend of over 9% dipping from $336.42 to its current value at $306.08 as on August 18, 2019, at 08:27:09 UTC. The coin started climbing up in the beginning and surged up to $357.49, but then it dropped almost steeply to reach as low as $276.22 around August 15. BCH has picked up some pace since then and may cross $310 soon.
- The price of BCH token is now $306.08 and 0.03015062 BTC
- The market cap has reached $5,495,593,966
- The ROI of the coin stands at -44.94%
- The circulating supply is now 17,953,788 BCH
The lowest recorded value of BCH token yesterday was $301 and it is already much above this value today. The coin seems to be headed in an upward direction and may take its traders on a sudden upward surge by climbing up to $310 soon.
Bitcoin Cash Price Prediction:
The highest recorded value of Bitcoin Cash in the last 90-days was $522 and in the last 30 days, it was $353. The coin may cross $350 by the end of this month and may start trading between $350 and $500 in the next 2 months. It is only a matter of time for BCH token to gain mass adoption, which may further push this crypto towards rising trends.
This can be regarded as a good phase to plan long term bulk investments in the BCH token and save for future benefits.
Bitcoin Cash (BCHUSD) weekly forecast on August 19 — 25, 2019
Cryptocurrency Bitcoin Cash (BCH/USD) is trading at 317. Cryptocurrency quotes are trading below the moving average with a period of 55. This indicates a bearish trend on Bitcoin Cash. At the moment, cryptocurrency quotes are moving near the middle border of the Bollinger Bands indicator stripes.
Bitcoin Cash (BCHUSD) weekly forecast on August 19 — 25, 2019
As part of the Bitcoin Cash forecast, a test of level 345 is expected. Where can we expect an attempt to continue the fall of BCH/USD and the further development of a downward trend. The purpose of this movement is the area near the level of 220. The conservative area for sales of Bitcoin Cash is located near the upper border of the Bollinger Bands indicator strip at 355.
The cancellation of the option to continue the depreciation of Bitcoin Cash will be a breakdown of the area of the upper border of the Bollinger Bands indicator stripes. As well as a moving average with a period of 55 and closing of quotations of the pair above the area of 420. This will indicate a change in the current trend in favor of the bullish for BCH/USD. In case of breakdown of the lower border of the Bollinger Bands indicator bands, we should expect an acceleration in the fall of cryptocurrency.
Bitcoin Cash (BCHUSD) weekly forecast on August 19 — 25, 2019 implies a test level of 345. Further, it is expected to continue falling to the area below the level of 220. The conservative area for selling Bitcoin Cash is located area of 355. Canceling the option of falling cryptocurrency will be a breakdown of the level of 420. In this case, we can expect continuation growth.