Bitcoin Drops to $8,700 Level but Analysts Hopeful for a Quick Turnaround

May 11, 2018 at 21:15

The flagship cryptocurrency’s price has been experiencing a bearish trajectory but it is still unclear what is causing the negative pressure on Bitcoin prices.

As of this writing, its price is at $8,780 as massive sell off continues. Traders are on a wait and see situation and worries that if panic selling kicks in, a drop below $8,000 is highly possible.

However, analysts are optimistic that Bitcoin prices will recover sooner rather than later citing the cryptocurrency’s stable trading volume in the past 24 hours which is still over $7.39 billion.

Among the reasons why traders are being relieved is the study released by Wall Street strategy firm, Fundstrat Global Advisors which claims that Bitcoin price may hit as high as $64,000 by the end of 2019.

The study expressed that that the ratio between the bitcoin price and miners’ breakeven cost (P/BE) has been a reliable long-term support level for the flagship cryptocurrency as current and future mining infrastructure development will appreciate prices before the end of 2019.

“We expect the mining economy to grow over the next several years, and project a BTC price of $36,000 by year end 2019 based on the historical average 1.8x P/BE multiple,” Fundstrat quantamental strategist, Sam Doctor, explained in the report.

However, he noted that even if $36,000 is the target range according to their analysis, Bitcoin prices may play anywhere in the $20,000 to $64,000 territory depending how the landscape develops over the next 18 months.

It can be recalled that Fundstrat has long been bullish on Bitcoin and has set its year-end price target at $25,000 for 2018.