Bitcoin is up 32 percent over the past month, overall volume is high and market sentiment is stronger than its been in over a year. There are certainly many reasons to be optimistic, but are we really out of the woods yet?
“The mood feels exactly like the run up to the previous bull market.”
That was the tweet earlier today from Ran NeuNer, founder of Onchain Capital and host of CNBC’s Crypto Trader. A popular voice within the cryptocurrency community, NeuNer recently spoke of how cryptocurrency is here to stay and that talk of the industry collapsing is now a “thing of the past.”
While NeuNer himself is well respected within crypto circles, CNBC has a rather controversial history in the sector. Last year, crypto trader Jacob Canfield published a graph showing how the cryptocurrency market appeared to move in direct contradiction to predictions made by CNBC analysts.
Most recently, an article published by the media outlet stated: “Don’t Buy Bitcoin, Warns Wealth Manager.” The story was widely criticized by experts in the cryptocurrency sector, who pointed out the many erroneous statements it made.
So are we headed for a repeat of the 2017 bull run?
More and more voices within the community appear to be in agreement that the crypto market has ‘bottomed out’ and it’s only up from here. Fundstrat’s Tom Lee, another popular face on CNBC, recently revealed in an interview that he believes the current fair value of Bitcoin should be around $14,000 – almost three times its current value.
Highly experienced trader, analyst and author Peter Brandt recently tweeted a graph revealing how Bitcoin might be entering a new parabolic pattern similar to that in 2015. If his prediction pans out it would see BTC breaking through $20,000 by the end of this year.
Not everybody is so optimistic though, with Bloomberg analyst Mike McGlone pointing out that Bitcoin is currently the most overbought its been since it’s December 2017 all-time high. If events unfold as they did back then, we could be in for another big dump.
After a strong weekend of gains, Bitcoin faced resistance at $5,200 earlier today and has since retraced to $5,100. Ethereum (ETH) remains strong above $174 with 5 percent gains today and XRP is down 2.5 percent, trading just below $0.35.