Pantera Capital CEO Dan Morehead has stated that Bitcoin’ss sideways action at USD 8,000 is about to end, with the company today signalling a perfect time to get in for the long.
Morehead’s company is well known for its exclusive focus on digital currencies and blockchain technology. Its rational analysis is based on Bitcoin’s 200-day moving average, believing that it had crossed below that threshold today.
“Bitcoin just hit that rare buy signal again”, said Morehead. He added:
“On the surface, it seems as though the higher the 200-day moving average goes, the more bullish the market is (and the lower it goes, the more bearish). In practice, however, the reverse is true. Extremely high readings are a warning that the market may soon reverse to the downside. High readings reveal that traders are far too optimistic. When this occurs, fresh new buyers are often few and far between. Meanwhile, shallow readings signify the reverse; the bears are in the ascendancy, and a bottom is near. The shorter the moving average, the sooner you’ll see a change in the market.”
#Bitcoin Price Cycles
After a 1067-day bull market, a downdraft which is spot on previous bear markets in depth, retracement.
My old friends in the hedge fund space would love the Fibonacci 0.618 bounce.
If I were a betting man, I'd say we've seen the lows of this cycle. pic.twitter.com/KIO80OFJtk
— Dan Morehead (@dan_pantera) February 7, 2018
Pantera has only made four trade recommendations in seven years, most of which have been based on the 200-day moving average. It holds an impressive portfolio of the top three coins by market capitalization, along with other alternative coins such as ZCash, ShapeShift and Civic.
