No doubt the price of Bitcoin has been kinda fluctuating lately. Paul Donovan, Global Chief Economist at UBS, has said the digital currencies can never be currencies and are “fatally flawed.”
After the recent fall, many are questioning the longevity of cryptocurrencies. The past rallies and sharp plunges show that the nascent asset class swings between periods of extreme optimism and pessimism.
For the non-believers, this is not the space to be in. However, for the investors who believe in the long-term story of cryptocurrencies, Ric Edelman, founder and executive chairman of Edelman Financial Services, believes that it is a good time to start buying Bitcoin.
Contrary to our opinion, the pullback in Bitcoin did not even reach the 38.2 percent Fibonacci retracement level of $4,712.89. It turned down from $4,471.1 on November 29. This shows that the bears are unwilling to wait for higher levels to sell.
At the start of November, BTC was already down close to 70 percent from the record high of almost $20,000 reached in December 2017. So, November’s losses essentially mark an extension of the bear market (which had supposedly bottomed out near $6,000) with a high-volume drop to 14-month lows below $3,500.
What do y’all think?