Technical traders are sometimes prone to making drastic calls: either a violent move upward or downward. However, who’s to say that Bitcoin’s fair value isn’t where it is right now—$10,000?
Trader and crypto-commentator Crypto Loomdart (@loomdart) decided to give his hot take on the current market: nothing drastic will happen to Bitcoin’s price in the next few months.
Yes, that’s right, apparently claiming that Bitcoin will just move sideways is controversial nowadays, but it’s possibly quite valid. According to Loomdart, Bitcoin at $10,000 may be its ‘fair value,’ As a result, the leading cryptocurrency may oscillate around the lower band of $8,000 and the higher band of $12,000 at the very most.
Loomdart says that anyone expecting a plunge below $6,000 or an explosive rise above $14,000 at this stage is, in his words, ‘delusional.’
This assessment is partly based on the fact that there is not enough buying pressure as of now to sustain another leg-up. Moreover, there are too many buyers clustered around the $8000-8500 price point to allow for a collapse below $6,000.
Of course, the circumstances of the current market could certainly change quite quickly. An unpredictable event like an ETF approval, another hash war between BCH and BSV, or another unknown could cause significant volatility.
It does seem as though Bitcoin has quieted down this month, however, which may indicate we have solidified support at this ‘fair price’ level. After all, $10,000 per Bitcoin does seem quite reasonable, given the current circumstances. This theory is further underscored by the fact that Bitcoin’s volatility is the lowest it’s been since June.
Traders can still feel free to trade in this choppy, sideways market if they want to take the chance. However, for those screaming for doomsday or a sudden parabolic rise—maybe it’s time to leave their opinions at the door, for a change.
Would you say that $10,000 is Bitcoin’s ‘fair price’ at this stage of its history? Let us know your thoughts below in the comments.
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