The cryptocurrency market endured a steep correction in January this year. Bitcoin, the flagship cryptocurrency, dropped from $13,400 on January 1 to a low of $8,139 this week, before bouncing back. Bill Baruch, brokerage firm Blue Lines Futures’ president, believes it may soon surge as much as 70%.
Through an article published by CNBC, Baruch noted that bitcoin dropped about 50% year-to-date, and implied this was the right time to buy. Per his words “the old saying goes, ‘buy when there’s blood in the streets.’” The trader noted that the $8,650 level was key, and that a continued close above it could signal “immediate upside potential.”
He added that the next resistance level is at $10,000. If the cryptocurrency is to break through it, the price could surge to $14,500, an over 70% rise from the low the cryptocurrency recently hit. At press time, bitcoin is trading at $9,226.
Baruch is notably not the only personality with a bullish take on the cryptocurrency markets. CNBC’s Ran Neuner, host of the Cryptotrader show, recently stated bitcoin will finish 2018 at $50,000. He even pinned a tweet at the top of his profile.
For the record, I am pinning this tweet. Bitcoin will finish 2018 at $50 000.
— Ran Neuner (@cryptomanran) February 2, 2018
Trader sees the market cap rebalance
While Baruch sees bitcoin recover from the dip, he also sees the cryptocurrency market cap rebalance as other cryptocurrencies surge. This presumably means bitcoin will lose another chunk of the market share it has, partly because of the technology included in other cryptocurrencies.
The trader’s prediction reads:
“While I expect bitcoin to recover from this low, I believe that there are cheaper and better technologies within the complex that are positioned for stronger gains.”
He went on to list fie cryptocurrencies he sees making bigger gains this year. Among the five are Ethereum, Ripple, NEO, and Stellar, well-known cryptocurrencies that already occupy top positions. Baruch also listed VeChain, a cryptocurrency that’s climbing to the top spots, and is set to rebrand in the future.
Some aren’t as bullish as the crypto trader. As covered by Core Media, a senior executive at Deutsche Bank recently warned that crypto investors could lose their entire investment. As experts advise, it’s important to know what to look for when investing in cryptocurrencies.