Bitcoin price not yet at ‘rock bottom’, says analyst

It’s likely that crypto markets could fall further before hitting ‘rock bottom’, an expert from Cboe Global Markets has claimed.

Commenting on the small recent rise of Bitcoin’s value, which currently sits at $6,412.85 at the time of writing, Kevin Davitt, senior instructor at The Options Institute at Cboe, said that we can only wait and see whether the latest uptick holds.

“Perhaps this is the beginning of a meaningful move higher for the cryptos after months of pressure. Only time will tell if this rally has legs,” Davitt told MarketWatch.

“There have been at least five significant moves higher (in percentage terms) for Bitcoin since the decline began in earnest in early January. While cryptos may be moving with relatively muted volatility in the short term, there’s no guarantee that will continue.”

Bitcoin’s price jumped five per cent in 24 hours at the end of last week, putting it at $6,700 before the weekend. The dip that has occurred since suggests that Davitt and others’ caution is not totally misguided.

Bitcoin’s status has been characteristically volatile of late, and that does not look like it’s going to change as the cold weather sets in.

Rian Stutland and Jim Lurio, founder of Stutland Equities and managing director of TJM International Services, respectively, recently argued that the cost of Bitcoin mining will ensure that the coin will not fall below the $6,000 level, and that the drop in price will bottom out before it gets to that point.