Forbes Analyst Touts $2,500 Bitcoin Price Target
Clem Chambers, a markets analyst publishing to Forbes, recently released an article to the outlet’s contributor network, explaining why Bitcoin (BTC) could head lower in due time. Chambers, the CEO of ADVFN and a well-known financial industry journalist, first drew attention to how markets, Bitcoin included, normally react in, during, and after a “crash.”
The reporter, who hasn’t been afraid to comment on crypto historically, explained that market collapses happen in “stages,” as seen by BTC’s drawdown in 2018, which saw the asset fall to key levels at ~$10,000, $6,200, and, most recently, $3,500 for weeks at a time.
Elaborating on why his remark is relevant, Chambers noted that once a market, like crypto, stabilizes or range trades, it is only a matter of time before assets breakout, and “produce a sizeable move.” While Chambers’ comments may make it sound like he aims to be a soothsayer, he added that this isn’t a new phenomenon, nor is it rocket silence.
Applying this theory back to the only-decade-old crypto market, the ADVFN chief noted that these movements are only accentuated and compounded in crypto, as in his eyes, blockchain-based assets exist in a “very immature market” filled with certain shortcomings that may play out negatively from a price action standpoint.
More specifically, he explained that the Bitcoin price will likely “break south” for its next leg, explaining that $2,500 is a viable price point in his eyes, a reportedly key long-term support level in the eyes of some analysts.
For instance, Stephen Innes, Oanda’s head trader of the Pacific-Asia region, recently told Bloomberg that he expects for BTC to collapse to $2,500 by January 2019, due to a diverse set of bearish catalysts, namely the Bitcoin Cash hard fork, regulation, and potential crypto-related hacks. (Note: speaking with NewsBTC, he recently confirmed this sentiment, stating that regulation could weigh down on cryptocurrency market in the near future.)
Chambers, touching on his rationale behind this bearish catalyst, drew attention to the resurgence in crypto volatility, adding that this is an evident sign of “uncertainty,” which may only accentuate that this industry is undergoing a change of guard, so to speak.
At the time of writing, this market’s foremost asset, BTC, has found itself up 1.5% in the past 24 hours, situated at $3,490 a pop.
Crypto Bottom May Not Be In
Chambers’ analysis only confirms the growing sentiment that the cryptocurrency market hasn’t reached a long-term bottom. As reported by Ethereum World News previously, Naeem Aslam, a crypto-friendly contributor to Forbes and the chief market analyst at ThinkMarkets, recently told CoinTelegraph that he expects for BTC to find a floor, adding that sell-side sentiment indicates that a bottom is “close enough.”
Aslam isn’t alone in touting such sentiment, with Michael Bucella, a Goldman Sachs executive turned BlockTower Capital partner, also exclaimed that Bitcoin’s “distress cycle” has nearly run its course.
Although Chambers, the aforementioned Forbes contributor, painted a dismal picture for Bitcoin’s short-term, the reporter, like his industry pundit peers, made it clear that the next “plunge” would likely put BTC at its bonafide bottom. Case in point, the trader explained that if crypto’s collapse continues, the next leg will likely mark the end of Bitcoin’s near-year-long bout of capitulation. In summation, the financial markets savant wrote:
This means we can wait and see. The end of this crash will look awful, the ends of crashes always do. That is yet to come but the next leg could be here.
Title Image Courtesy of Chinh Le Duc Via Unsplash