There is no doubt whatsoever that Bitcoin (BTC) has found a bottom. The price is currently trading above $6,400 and ready to make a decisive move. Apparently, market makers are waiting to see how the stock market situation plays out before they open the floodgates. Make no mistake; big money has been changing hands in OTC markets. If you think institutions are not involved yet, you are wrong. However, nobody wants to touch the price of Bitcoin (BTC) on exchanges at the moment. Any activity on Wall Street is highly likely to have a strong and immediate impact on other markets. As we saw recently, an attempt was made to begin a new cycle but it failed and massive profit taking followed.
Further downside in the stock market is likely to result in further sell off in cryptocurrencies. This does not mean though that the price of Bitcoin (BTC) may fall below $5,800. To the average investor, this does not make much difference as they probably will have to wait a little longer. However, for the institutional investor handling big money for clients, it is a serious concern. This is why most of them have adopted a wait and see approach. As long as the price remains above $5,800 Bitcoin (BTC) remains a strong buy. There is a strong possibility that institutional investors are deliberately trying to keep the price of Bitcoin (BTC) down on exchanges while they accumulate. Let’s face it, for the average investor buying and storing Bitcoin (BTC) is easy. However, institutions have to find over the counter buyers and make arrangements for custody.
Chart for BNC:BLX (1M)
Studies conducted by independent observers in the cryptocurrency space indicate that institutions have been buying the dips since the beginning of the correction. These are people who have been around for decades and they know full well what is going on. They understand that Bitcoin (BTC) is the future, but they are not going to praise it while they buy. This is why we see people like Jamie Dimon openly criticizing Bitcoin (BTC) while his firm buys it for clients. There are plenty of other industry leaders that have been bashing Bitcoin (BTC) for the last few years. However, in the near future you will find them praising Bitcoin (BTC) because by then they would be done buying. Of course, for the average investors it would be too late then.
For the past eight years we have seen Bitcoin (BTC) die more than a hundred times! People have called it a scam, a pyramid scheme, and a bubble but it has survived. There is no reason to believe that it is going to change. Sure, the price may not rise as aggressively as before. As the supply of Bitcoin (BTC) decreases, Bitcoin (BTC) will appreciate in value. However, it may not do so with the same pace. This is why Bitcoin (BTC) will follow either of two scenarios in the years to come. If it follows Scenario A, it will rise back to the top of the ascending channel and we will see a price of $300,000 in 2019. However, if it follows scenario B, we will see its price rise to $60,000 in 2019. In any case, the bottom is in and after 2018 we may never see the price of Bitcoin (BTC) in four digits ever again.