The enthusiasm around the short term exploits of the world’s largest cryptocurrency seems to be fading. Former Fortress hedge-fund manager Michael Novogratz has trimmed down on his previous forecast, Novogratz is now certain that Bitcoin will not cross the $9,000 mark in 2018.
The last few months has seen bitcoin spend the longest time trading within a range so tight since the middle of 2017. The price behaviour of the cryptocurrency in Q3 and Q4 2018 has led to numerous predictions from different quarters.
Sentiments and Predictions
While a good number of users believe that bitcoin has exhausted it’s bearish momentum and is set for a significant rally, there are those who believe that the breakout from its present channel could be in either direction. Then besides technical factors, a significant sector of the community are sitting on their hands, awaiting the outcome of major regulatory decisions, especially from SEC.
Novogratz’ recent forecast is a far cry from his last year’s prediction that bitcoin price will rise to $40,000 in 2018. His latest forecast notes that it will take the first two quarters of 2019 for the cryptocurrency to move above $10,000.
“I don’t think it breaks $9,000 this year,” Novogratz said on stage at the Economist Finance Disrupted event in Manhattan Tuesday.
Bitcoin traded slightly above $20,000 in January 2018 reaching an all-time high price in the process. However, a protracted bear market has seen the cryptocurrency shed over 53% of its value, trading around the $6,500 region as at the time of writing.
The Fear Of Missing Out (FOMO)
Chart patterns and market sentiment strongly suggest an imminent upward movement. The irony of the prevailing scenario is the believe by many that the rally may be backed by FOMO (Fear Of Missing Out) by institutional investors and speculators who are seriously anticipating a breakout.
Novogratz upholds the FOMO analysis as well as he believes that the price rally of late 2017 took a lot of people unawares, and those would not miss out a second time.
The numerous analyses and predictions that are flying around the bitcoin and overall cryptocurrency ecosystem only reveal the palpable anticipation that exists in the industry. Although overall sentiment favours the upward movement of price in the near future, there are yet no guarantees, as everyone sits on their hands waiting for the perfect wave to ride.
Iyke Aru is a seasoned author and educator in the blockchain and cryptocurrency industry. He has been in the business of crypto content writing for many years with thousands of his articles across several platforms on the internet. Iyke is based in Nigeria where he stands out as one of the most informed and credible figures in the cryptocurrency industry. Outside blockchain and crypto, you will most likely catch Iyke playing or discussing football with friends and family.