Bitcoin has been on a bear run in the past few weeks. There was a sliver of hope when the cryptocurrency finally crossed the psychological threshold of over $4,000 over its closing price on February 22, 2019 – which was a first since January 9, 2019.
But those hopes were soon shattered when Bitcoin’s value lowered from February 23 onward. Since then, the cryptocurrency has been shy of hitting $4,000 again.
Instead, it has been fluctuating over the value of $3,800 and under the number of $4,000 on an average basis. At the time of writing, the cryptocurrency closed the day of March 15 on a note of $4,009.53. The price of bitcoin on March 16 is starting at $4,001.95.
So what does this play around $4,000 mean for Bitcoin? Let’s take a closer look.
While the market is not showing any signs of a breakout anytime soon, the very existence of stagnancy or stability, rather than a drop in itself is quite an accomplishment. This is especially true for those who have massive investments in Bitcoin in their overall portfolio.
When Will Bitcoin Actually Improve Again?
This shows that Bitcoin has been able to stabilize its value to a great extent. There’s no doubt that the leading cryptocurrency has fallen a long way since its December 2017 high of over $20,000 in value. But at the same time, it has been able to maintain over the threshold of $3,000 – even when it came very close to going further downwards on December 17, 2018, when it was over $3,285.
With that being said, a breakout may or may not happen at least until a few months down the line.
If one cryptocurrency expert is to be believed, it might actually happen sooner than you may expect (yes, sooner than December 2019).
A Breakout May Be in Cards by August 2019
According to Fundstrat Global Advisors strategist Tom Lee, Bitcoin could see a breakout a few months from now.
Speaking to CNBC on March 14, Lee mentioned that it could all be due to the increased awareness that Bitcoin is facing this year. He pointed out how prominent financial institutions such as JPMorgan and social media giants such as Facebook have been moving towards the cryptocurrency market, which may create some momentum for Bitcoin as well.
Lee is hopeful that if Bitcoin maintains its average price of around $4,000 for 200 days by August, then that could create even more favorable conditions and cause the cryptocurrency to gain traction once again. From there, he projects for Bitcoin’s breakout phase to begin again.
Different experts state different price expectations, always do your own research and only invest what you are willing to lose.