In the past 6 months, this is the first time that Bitcoin is going to see a green monthly candle. In past one month, Bitcoin has been trading between the range of $3,750 and $3,400.
For the last about 7 days, Bitcoin didn’t see much action as it has been oscillating between $3,610 and $3,620. At the time of writing, it has been trading at $3,648 with 24-hours gains of 0.26 percent while managing the daily trading volume of $6.3 billion.
Bitcoin price chart, Source:
According to the crypto trader and investor, Josh Rager, if bitcoin goes below $3,413, February might not be a green month after all and would rather continue the trend from past 6 months with another red candle.
“Bitcoin is working on its first green monthly candle since July 2018. The past 6 months Bitcoin has seen red on monthly, a break and close below $3413 will continue the red monthly trend.”
Bitcoin still Undervalued
Recently, Brian Kelly, a crypto-focused contributor on CNBC said in an interview that he is expecting more lows for Bitcoin. A sentiment which is shared by many crypto analyst and traders. Some experts are even calling out Bitcoin bottom at below $1,500. According to Kelly, Bitcoin can go sub-$3,000.
“I look at the price and I say that we’ve seen three or four of these kind of boom-and-bust cycles in Bitcoin. If you look at the most recent two or so, we’re following roughly the same path as we’ve had… We might have another dip lower — it wouldn’t surprise me at all.”
As for the Bitcoin price target, Kelly shared it won’t be a surprise if it fell down to $1,500. Recently a crypto trader made a bet that the price is actually going to around $1,165 level. Earlier this month, The Crypto Dog, a crypto trader echoed similar thoughts when he shared,
“$1800 BTC and $50 ETH wouldn't surprise me. I don't know for any certainty we'll see those prices, nor do I mind if we reach them or not. If you're in $BTC for the long haul, DCA. If you're learning to trade, just survive. Keep your risk low, gains will be easier someday.”
Despite acknowledging that Bitcoin could take a serious drop from $3k, Kelly remarked from the perspective of fundamentals, the sell-off could be in its last phase. He further shared that on the basis of BKCM’s “proprietary [valuation] model,” Bitcoin is about ”50 percent undervalued,” and the overly negative sentiments have pushed the prices below what is fair.