Mon Jun 11
Reading time: 3 minute(s)
If you’re wondering when is a good time to purchase Bitcoin, the answer is now. Pantera Capital Management founder and CEO Dan Morehead believes the cryptocurrency may have reached its low for this year giving potential investors a great opportunity to opt-in.
And he isn’t the only one. Robert Sluymer head of technical strategy at Fundstrat Global Advisors says that positive momentum is building and Bitcoin will start to rally when it hits around the $7,000 mark.
Even though it dropped to $7,500 on Thursday at 5:30 p.m. ET — down more than 50% from highs of approximately $19,500 in December 2017, both Robert and Morehead agree that Bitcoin rarely stays cheap in the long term meaning you won’t get a better time to buy than now.
Bitcoin has dropped several times over the past few months to around $7000 before recovering. Sluymer says, “That’s certainly the first step in a bottoming process – to see some sort of consolidation or abasing taking hold.”
Sluymer is hitting as the present time is a good moment to purchase Bitcoin, as the currency might revive past the next level at about $7,800 after which he predicts it will start climbing quickly in the near long-term, showing another good sign that this is the right time to purchase Bitcoin.
“The next thing that has to happen is to see bitcoin actually rally through the downtrend,” he said. “We use the 15-day moving average. It’s very simplistic, but it’s a pretty good proxy across most markets. [$7,800] will be the next hurdle for it to get through.”
Bitcoin hit the $7,800 mark the end of May and hasn’t topped it since but Sluymer remains positive that everything is lining up for another, higher climb perfect for investors looking for a longer term investment. For those hoping to make a payback on the short term, he believes you will still have to be cautious.
So what causes the rise and fall cryptocurrencies? Government regulations for one thing. Even small changes tend to directly affect their standing.
Because cryptocurrency is not backed by any central government, meaning different countries have different standards regarding them, many are unsure about buying into cryptocurrencies with potential regulations on the horizon that could cause a few issues.
Even with looming regulations from around the globe, Moorehead remains confident and counters with this advice, “Many institutions are essentially buying the rumor [of potential SEC regulations] and selling the fact, getting invested now so that in three, four, five months when the institutional, quality-regulated custodians that we’re hearing about come online, they’ll already have their positions.”
His tip for investors: “Buy a currency once it breaks its 230-day moving average, wait a year and sell. Without even thinking about it,” Morehead said, “you make an average of 239 percent.”