Quote from: timerland on September 17, 2018, 09:44:17 PM

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The Allianz chief economic advisor said in an interview that cryptocurrencies are not dead, though they may be overvalued. He specifically mentioned bitcoin as an asset whose buy value should be circa $5,000, a sentiment he had already shared in June. In his latest statements, El-Erian added that unnecessary speculations had led to the previous bullish action, causing an unwarranted buying frenzy.

I actually completely agree with his comments. Finally, someone realistic and sensible talking about bitcoin.

While the bear market may still have some more time to go before it finally bottoms, I think it is evident right now that bitcoin is nearing its floor. Anything less than $4-5k in price would simply mean the buying pressure from below will boost demand and bring prices back up again.

The rallies we saw a few weeks back were essentially bull traps, though. As I've mentioned, bearish sentiment still dominates the market and it's hard for a trend reversal to happen right now. The most likely outcome is thus a dip to $3-5k, a correction upwards, and stability there before the recovery finally comes. Reason why I don't think BTC is going to stabilize at the $6k level is because there's going to still be a lot more time that will need to elapse before we're close to being done with the current bear market.

It is tough to make calls on the floor levels. When the price started retreating from $20,000, people predicted that $10k would be a very strong support level and would probably form the floor. We saw that Bitcoin cut through that level and dropped much lower. It might look as if Bitcoin is stabilizing at around $6k now, but it could make a sharp move in either direction.