Blue Line issues bullish outlook on Bitcoin
US-based futures and commodities brokerage firm Blue Line Futures has struck an upbeat note on Bitcoin, claiming that recent low volatility could indicate the crypto is about to turn the corner.
After the sharp rise in Bitcoin’s price in December, and the subsequent abrupt sell-off over the following weeks, Bitcoin volatility has recently dropped to levels last seen in November.
“Ultimately, after its volatility has become this depressed and the cryptocurrency has lost as much as 70% from its December peak, I believe the selling has become exhausted, and a bottoming process can begin,” said Blue Line Futures president and founder Bill Baruch in an interview with CNBC.
Baruch points to the launch of Bitcoin futures contracts as the central factor in the hysterical buying that saw the crypto reach a high of around $20,000 in early January.
“Bitcoin topped out in the midst of the futures contract launches; this was a big step in the asset’s maturation. There was tremendous speculation, and a sort of fear-of-missing-out trade sent prices skyrocketing too high, too quickly. The sell-off since then has wiped out most, if not all, of the over-enthusiasm,” says Baruch.
Encouragingly for crypto bulls, Baruch is now adopting a decidedly upbeat tone on the price outlook.
“I like to say that a bottom is a process, not a price. Now that the price and volatility have come back down to Earth, this bottoming process can begin. I see significant upside from here in the long-term,” adds Baruch.
On the upside, Blue Line sees $10,000 as a crucial point of price resistance, a level at which investors should consider selling.
Bitcoin currently trades around the $6,700 mark, with the $10,000 target implying a highly attractive upside move of about 50% from the current price.