Crypto Bull: Bitcoin (BTC) Under $4,000 Driven By Emotional Overreaction
Parabolic Move, Then 80% Correction
Ronnie Moas, an impassioned, outspoken Bitcoin (BTC) bull, recently sat down with CoinTelegraph in an exclusive interview. Speaking on crypto’s most recent downturn, which sent the aggregate value of crypto assets under $140 billion, Moas maintained his bullish sentiment, making it abundantly clear that BTC isn’t dead in the water.
When asked about how the crypto market is faring, Moas, the director of Standpoint Research, turned the question on its head, speaking on the dismal performance seen in global markets. He explained that half of the names on the S&P 500, the top 500 firms listed on American markets, are down by 25% to 50% since January, adding that stock investors have been sharing in the cryptosphere’s pain.
Returning to the question at hand, the prominent market analyst, doing his best to calm investors’ qualms, simply stated that we’ve been down this road before. Moas added that it is a common sight, almost as if there’s a cycle, to see Bitcoin undergo parabolic moves, before a subsequent 80% correction, as seen today. And with that in mind, the cryptocurrency advocate explained:
Every time we have a parabolic move, we knock out the high from the previous cycle. And I don’t think the parabolic move that I am expecting next year will be any different.
A piece of analysis recently completed by Rob Sluymer of Fundstrat corroborated Bitcoin’s penchant for cycles. The analysis noted that 2014/2015’s Bitcoin bear market is eerily mirroring that of 2018, both in terms of technical and overarching pattern capacities.
Weak Hands Are Getting Shaken Out Of Bitcoin
Touching on the current market sentiment, Moas, trying to imbue the audience with shock, noted that over the history of stock and crypto markets, those that sold amid a crash “ended up regretting it shortly thereafter — people jumped off bridges.” He went on to note that this unfortunate occurrence has happened during the Great Depression, Black Monday, Dotcom Bust, and the Great Recession, but then added that those who bought at the bottom did “very very well for themselves.”
Giving a vague price prediction, Moas, who seemed fired up, exclaimed that he doesn’t find it logical that gold’s market capitalization, a cool $8 billion, is 100x that of Bitcoin, and 60x that of crypto assets. This, of course, is likely in reference to the sentiment that Bitcoin, in all its digital glory, will eventually surpass gold, the world’s de-facto store of value for millennia.
Maintaining a positive angle on crypto’s recent crash, the Standpoint Research representative noted:
We are at the beginning of this game… we are in a price discovery phase. There are weak hands getting shaken out. People who’ve never been in a situation like this before are acting as if Bitcoin is going to zero, so I don’t think that’s happening.
Dollar Cost Averaging Into Bitcoin Isn’t A Bad Idea, Says Moas
Closing off his comments, Moas noted that “the smart people” bought Bitcoin on its way down. Whether they have a cost basis of $9,000 or $4,000, the prominent market researcher stated that those who buy at lower values, especially as others capitulate, are likely to do very well. Wrapping up his remarks, in a fit of passion, Moas noted:
History repeats itself. And if you look back at financial market history, going back 100 years, the time that people made the most money is when markets crashed and the smart people took advantage of an overreaction and emotional selling that we are seeing right now… I know a company that is spending one hundred million dollars on mining rigs right now, and I think they know where Bitcoin is going.