The old proverb says "buy when there's blood on the streets," and that's what I'm doing with the Bitcoin, said Bill Baruch of Blue Line Futures to CNBC.
On Friday, the cost of a Bitcoin fell to $ 7,700. This was a drop of 25% for the week and 40% for the beginning of the year. This bottom of $ 7,700 is ironic because it is the same level that price broke in November and began its parabolic rise.
Earlier today, the price even fell to less than $ 7,300.
I follow the key level of 8,650 dollars, and lasting closing above this level could be an indication of immediate appreciation. The next level of resistance is $ 10,000, and the breakthrough back above this level should boost buyouts, which suggests a short-term $ 14,500, which would be a 70% jump from current levels of about $ 7,700.
On the other hand, I think we are witnessing the rebalancing of market capitalization. Many reject Bitcoin but do not reject block technology.
I expect the Bitcoin to recover from this bottom, but I think the market has cheaper and better technologies that are positioned for higher growth, Baruch says.
The five on which I concentrate are ether, NEO, ripple, stellar and VeChain. The market capitalization of the crypto exceeded $ 800 billion, a value that was subsequently reduced by half. Bitcoin share of this market capitalization has slowly shrunk and is now only a third.
With the return of buyers, I think this trend will continue and I expect these five currencies to further strengthen their positions, Baruch adds.
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