Amongst news of Russian intelligence officers using Bitcoin to fund their election meddling and a Greek court extraditing a $4 billion Bitcoin money-launderer, the price of the digital asset has been predicted to drop below $6,000 soon – but then enjoy significant recovery.
Analysis by FXStreet sees a pattern emerging with an obvious downward bias heading for $5,900. In the short term, we could see support at $6,100 with resistance at $6,300 in a 21-day moving average.
Bitcoin to $2 million?
However, there have been some wild long-term predictions flying around lately. CEO of ADVFN Clem Chambers recently detailed his beliefs of Bitcoin being a logarithmic asset. When looking at logarithmic price charts, rather than the bearish trend that has emerged in the past few months, you see a constant price increase of around 26 percent. Chambers points out that this growth looks promisingly similar to that of Warren Buffet’s own investment portfolio.
Following this non-linear pattern reveals an almost limitless potential for Bitcoin, with possible growth to $200,000 or even $2 million in the long term. However, the same analysis means the price could test $5,000, or even $4,000, before any significant recovery. Should this prediction pan out we could soon be seeing a repeat of last December’s bullish highs – but with an extra zero.
Wild Bets and two-way Bitcoin ATMs
The news comes as an anonymous Australian trader placed a $6.3 million bet with bookmaker Tom Waterhouse that Bitcoin’s value would exceed that of billionaire investor Warren Buffet’s company Berkshire Hathaway by 2023. If his prediction is correct he could win as much as $890 million on the bet. Although, considering he is likely heavily invested in Bitcoin, if his prediction comes true then $890 million will be small change to him. Berkshire Hathaway shares are currently worth $290,000.
In other positive news, Malta got its first two-way Bitcoin ATM, meaning users can not only buy Bitcoin using the ATM but also withdraw fiat cash from their Bitcoin wallet.
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