After today’s trading show the Bitcoin undervalued, analyst suggest that the investors may be going through an accumulation phase for the largest crypto coin. This can be seen in the steady upward trend that has shown a growing confidence on the crypto.
Bank Analyst Warn against the Bitcoin Undervalued
The Bitcoin went up close to the $5300 mark in today’s trading but the trend continued where the Bitcoin undervalued. This is continued rise that was highlighted by last week’s favorable bump that saw it increase around% for the year.
Bank analysts that saw the increase caution against the Bitcoin stating that increase may be fleeting. They cite bubbles like the Dow Jones crash during the great depression, the China market crash and even the recent crash experienced by the Bitcoin when it moved back from its peak at the $20,000 mark.
On the other side of the argument, Kevin Deanan of UBS expressed their vote of confidence for the crypto. In the bank’s research note to clients, he mentioned that “bitcoin has gone through its bubble phase and is ready to rise phoenix-like from the ashes just as other assets and indices did in the past,”
Cold Feet in 2018
The rise of the Bitcoin was predicted to happen last year but the coin shrank significantly in 2018 making the Bitcoin undervalued. In that year when the coin closed in to the $6000 mark then took a massive drop, the BTC holders were spooked. This led to the destruction of over 70,000 bitcoin days during the time period.
The Accumulation Phase
What makes this year’s dip different? Now investors are aware of the price movement and are being patient to get better prices. Investors are now timing the dips to get better value for their bitcoin. Furthermore, they are being very patient about it.
The fundamental however remain solid. In addition, the Bitcoin climate of adoption is only getting better. With these signs, it is just a matter of time or timing before the next Bitcoin rise.