Your Bitcoin Cost Basis Won’t Matter In Five Years
Since Bitcoin (BTC) began to fall just thirteen months ago, investors have done their best to time the bottom. Some have been taking the safe, smart route, purchasing BTC on a normal basis to dollar-cost average in, while others have been a tad more irrational, purchasing cryptocurrencies whenever it suits their emotions.
Yet, one analyst claims that by this point, it won’t matter whether your Bitcoin cost basis is $1,800, $3,000, or any other figure in this range in three to five years. The analyst in question is Josh Rager, an industry personality and technical analyst that has garnered tens of thousands of followers on Twitter.
In response to a quip from The Crypto Dog about Bitcoin’s bottom, Rager explained that as BTC has already retraced 85% from its top, “what’s another 5% or 7% compared” to how far this market has dropped already? In other words, calling a Bitcoin bottom now isn’t nonsensical, even if this market falls a tad further (percent-wise) from its most recent all-time high.
Zhu Fa, the co-founder of Poolin (currently has 11% of Bitcoin’s hashrate), told his WeChat followers that there’s a chance that BTC’s next all-time high will be around the 5 million Chinese yuan range. This equates to $740,000 U.S. He added that when the asset pulls back, it will find a bottom in the 500,000 yuan region, 90% lower than the forecasted all-time high.
Rager’s recent quip on Twitter comes after he took to Twitter to famously remark that 2019 may be the last time that the “general population,” meaning common Joes and Jills (non-affluent), might be able to afford one whole BTC. Per previous reports from this outlet, the TokenBacon and Blackwave advisor explained that as BTC could move parabolically higher in the coming years, by 2021, few might be able to obtain a notable foothold in the cryptocurrency space.
He added that while global household incomes could increase across the board (due to inflation, better economic conditions, etc.), thus making BTC affordable again, more likely than not, the cryptocurrency will be “out of reach for most.”
Case For Further Bitcoin Drop
While Rager is making the case that it won’t matter when long-term “HODLers” accumulate in the coming year, some analysts have still done their best to forecast lower lows in the ongoing market cycle. So what’s the case for a move lower, and what are analysts calling for?
Financial Survivalism, an insurance agent turned full-time trader, claimed that per the “Hyperwave” analysis technique, he determined that there’s a likelihood that BTC could revisit $1,165, which is where it peaked during the rally prior to 2017’s. Murad Mahmudov, a partner at Adaptive Capital, noted that fundamentally, many preeminent altcoins, including XRP, ETH, and EOS, remain overvalued, and thus need to move lower before BTC can head higher.
In another storm of comments, Mahmudov noted that the waning presence of Bitcoin-related comments on Twitter should also be a cause for concern. The trader explained that tweets regarding the cryptocurrency have reached 2014 levels, lower than any point in 2016, indicating that very few people care about decentralized, sovereign, uninflatable currency, along with the thesis that the 2017’s parabolic run-up had little effect on this community’s size.
Here at Dollar Destruction, we endeavor to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!
Don’t forget to join our Telegram channel for Crypto, Business & Technology news delivered to you daily.