With the Bitcoin halving now having come and gone, we thought it was the perfect time to see what a pro is thinking, so we at OKCoin posed 3 questions to founder of StockDweebs and professional Bitcoin trader Eric Choe about his thoughts on what could be in store for 2020 and what impact the halving had on its price.
What are the highest and lowest prices you could potential see for Bitcoin this year?
“There’s a few things to keep in mind in regards to the bullish point of view for Bitcoin. Technically speaking, Bitcoin’s low in March 2020 formed a higher-low in comparison to the low set back in December 2018. With its current trajectory, Bitcoin has the ability to reach a technical level to $14,800.
However, at current prices, I do see Bitcoin correcting towards $6,500 before reaching its ultimate goal at $14,800 by the end of this year. Bitcoin is currently pressing against a major inflection point. These large inflection points often creates a barrier of resistance that is very difficult for any asset class (whether it’s a stock or cryptocurrency), to break above on its first attempt.
Hence, a dip from the current level of $10,000 makes sense. Look for $6,500 area as the main source of buying volume if Bitcoin does fall within the next few months.
From the bearish point of view, as long as Bitcoin cannot get above $10,500 (the inflection point), then the lowest price I can see Bitcoin revisiting is a target $4,000. This coincides with the bottom of the current downtrend channel and a highly targeted Fibonacci extension level that bears often use to target certain price points.”
What investment/trading method do you feel is key to investing in Bitcoin for the long-term future?
“In long-term portfolio management, I often buy an investment whenever the share price drops more than 10% in any given day. This often provides an entry-price that positions your portfolio to capture extreme returns in the future once the market finds its intrinsic value.
As investors, we often focus on long-term growth. We embrace market dynamics and capture opportunities during corrections. We ignore day-to-day fluctuations as our research and due-diligence triumphs any negative short-term misses.
The key to investing, especially in a speculative asset like Bitcoin, is to let its full life-cycle mature. Time gifts you the ability to reap the huge benefits and rewards by staying patient.”
And finally, there’s a lot of debate on how the halving affect’s Bitcoin’s price. Do you think it has any impact?
“As a technical trader and investor, I believe any news or market-news related event will already be priced into the assets fair market value. Hence, I do believe it has significant impact on price.
To case in point, Bitcoin gained nearly an extraordinary 160% from its March lows leading up to its halving. Typically, these large-scale events provide a stimulus that creates price surges. After the news is released, we often see short-term traders and investors take profits from their gains and re-evaluate the market conditions before committing any more time and money into their decision.
All in all, I do believe in Bitcoin’s ability to become a once-in-a-generation type investment that can disrupt the overall value-chain in payments.”
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Disclaimer: The material and information contained in this article is for general information purposes only, and no part of this article should be construed as professional financial or investment advice. Whilst we endeavor to keep the information up to date and correct, OKCoin makes no representations or warranties, express or implied, as to the completeness and accuracy of the information presented in this article. You should not rely upon the material or information in the article as a basis for making any business, legal or any other decisions.
The views, information, or opinions expressed during the “OK 3 Questions” series are solely those of the individuals involved and do not necessarily represent the official policy or position of OKCoin.35