In an $80 Trillion Fair Value Market Cap, Bitcoin Prices are Under Priced at $6,500
A mash-up of significant developments in the crypto-verse and over-the-top Bitcoin price predictions by Tim Draper may render our previous Bitcoin price predictions true. The reports that Morgan Stanley plans on developing their Bitcoin derivatives is further strengthening this stance. More and more hedge funds and self-managed family funds are looking to funnel their capital into this nascent field, which can be considered as a positive sign for Bitcoin and other cryptocurrencies.
Tim Draper is highly bullish on Bitcoin. This fact can be considered as a relief for investors who bought Bitcoin at the highest price and have had to face around 75 percent losses. As per Tim, the disruptive and innovative cryptocurrency market cap would storm to a massive $80 trillion market cap with the Bitcoin leading the charge.
"As per Tim, the disruptive and innovative cryptocurrency market cap would storm to a massive $80 trillion market cap with the Bitcoin leading the charge."
Tim said there is one major component which makes Bitcoin and blockchain technology unique and different from the internet while speaking via video link at Deal Street Asia sponsored event held in Singapore. While the internet targeted billion dollar industries, the blockchain, digital assets, and cryptocurrencies shall be targeting trillion dollar companies within the healthcare, finance, insurance, and tech segments. He may be correct as regulators from leading global economies such as US, Canada, China, UK, and India are bullish on blockchain technology primarily because of its inherent features which enable efficiency and transparency in business processes.
He even mentioned that last year's price surge to $20,000 was due to lack of awareness around cryptocurrencies and this year's sink is actually a primer for a suppressed rally that would propel Bitcoin to new levels of around $250,000. At present market cap, that's a gigantic 400X increase, a face that will further drive the demand.
"Bitcoin prices will probably climb towards the $10,000 level and later the $12,000 handle."
The trend is also bearish from a long-term perspective. This comes after market's deflating collapse of Bitcoin prices from $20,000 peaks to $5,800 level late last month. However, as can be analyzed from the chart, the $6,000 mark is a clear support line. Sellers have found resistance six times in the last six months at this point. The result is an eight-month resistance trend line capping gains with a wedge with floors at $6,000.
We require strong price movements above that resistance trend line at $6,800 - $7,200 level in for the establishment of the validity of the purchases. When such a situation occurs, Bitcoin prices will probably climb towards the $10,000 level and later the $12,000 handle. Before then, we suggest a conservative approach and taking a neutral stance in accordance with our last Bitcoin price analysis.