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Analyst: Bitcoin Price Can Still Rally in the Short-Term, Despite Major Correction

Last Updated March 4, 2021 5:02 PM
Joseph Young
Last Updated March 4, 2021 5:02 PM

Alan Silbert, a long-time bitcoin investor and analyst, has predicted a “gut-wrenching correction” to occur and the bitcoin price to decline in the short-term.

On December 6, Silbert wrote:

Next 12 months in #Bitcoin  :
(1) MSM: bubble! bubble! bubble!
(2) BTC keeps going higher
(3) Gut-wrenching correction
(4) MSM: we told you so!
(5) HODLers back up truck, new entrants pile in at sale prices
(6) BTC rises from the ashes again
(7) New ATHs.
(8) Repeat pattern.

— Alan Silbert (@alansilbert) December 6, 2017 

Earlier today, on December 22, Silbert reassured the bitcoin community that bitcoin is in the gut-wrenching correction period but will soon move on and demonstrate a swift recovery. Silbert further emphasized that he supports a correction because it stabilizes the market by shaking off speculators and weak hands.

“Unpopular opinion: I welcome a correction. When iced tea companies pivot to blockchain and go up 300%, we have reached terminal stupidity and it’s time to shake out weak hands, rekt iced tea stock buyers, and consolidate on way to $50,000,” said Silbert.

Where Does Bitcoin Price Go From Here?

As CCN.com previously reported, the recent decline in the market valuation of cryptocurrencies is not exclusive to bitcoin. Every single cryptocurrency in the market has substantially dropped in value. Bitcoin lost the least of its market valuation out of the 10 most valuable cryptocurrencies in the market.

Mike Novogratz, the billionaire hedge fund legend and former Fortress executive, stated that the short-term top has been met and that the bitcoin price could remain in the $16,000 region for awhile. But, Novogratz noted that the bull market of bitcoin is merely pausing and that in the short-term, the price of bitcoin will likely recover. He stated:

“Looks to me like a short term top is in. My hunch is we consolidate between $10,000 – $16,000 for a while. Extreme would be $8,000. Bull market isn’t over. Just pausing.”

Novogratz mentioned that in an extreme situation, the price of bitcoin could fall to $8,000. Even then, on a monthly basis, it would take the price of bitcoin back by one month. Last month, on November 22, the bitcoin price was $8,000 and since then, the price of bitcoin has recorded a staggering 65 percent increase in value.

Considering that the price of bitcoin has already started to recover and it has increased from $12,500 to $13,500 within the past few hours, in the next few days, it is entirely possible that the price of bitcoin could recover back to its previous levels in the $16,000 to $17,000 range.

Important Events to Consider

This week, it was revealed that the $98 billion investment bank Goldman Sachs is planning to launch a cryptocurrency trading desk by early 2018, as reported by Bloomberg.

Michael DuVally, a Goldman Sachs spokesperson, confirmed that the company will address the growing demand for bitcoin and the cryptocurrency market in the upcoming months and in the long-term.

“In response to client interest in digital currencies, we are exploring how best to serve them,” said DuVally. 

In addition to Goldman Sachs, the New York Stock Exchange (NYSE), the largest stock market in the global finance industry, has applied for two bitcoin exchange-traded funds (ETFs), which will allow institutional investors, casual trainers, and retail traders to invest in bitcoin through regulated channels, apart from bitcoin futures exchanges of Cboe and CME.

Featured image from Shutterstock.