Naeem Aslam, the chief market analyst at ThinkMarkets, a financial services firm focused on forex, equities, and cryptocurrencies, has noted that “questions are being asked constantly when it comes to Bitcoin’s (BTC) battle with the $4,000 mark.”
Aslam, a business and financial economics graduate from the University of Leeds, argued in a blog post (published on March 19th, 2019) on ThinkMarkets that “the result of this battle sets the tone for a bullish or bearish trend.” He explained:
Since December 14th, 2018, there have been several battles between bulls and bears at the price level of $4,000. In each of these battles, bulls have lost the war because after the first attack at the $4,000 level, the bears have been able to gain enough strength to push the price back below this critical mark. It is in this essence, that this level has become a matter of life or death for crypto traders.
Aslam, who received his qualified financial advisor certification from the University College Dublin, stated that “if you are a long-term investor, you will not really worry about these short-term levels.” He also wrote:
The element of risk premium is of critical importance here and I find this immensely interesting … For instance, Bitcoin … is trading at $3,962 [at the time of writing this article] and the recent meaningful low was formed on March 4th when the [cryptocurrency] touched the price level of $3,671. The difference between the two is your risk premium.
He added that “it is all about making an intelligent choice and buying when the price is still close enough to its bottom. For investors who are buying at these levels, they usually have a target of [the] previous high, and for Bitcoin, it needs to be the level of $20K.”
“High Chance” Next Bull Market Will Push BTC Price Past $100,000
According to Aslam, there is a fairly “high chance” that the next cryptocurrency bull market will push the price of bitcoin (BTC) “over $100,000.” He also believes that Bitcoin’s value can potentially surge to $400,000 and that “crypto winter is coming to an end.”
Going on to explain why he thinks that cryptocurrency prices will recover, Aslam pointed out that in 2011, bitcoin’s price dropped about 93% from its all-time high (at that time). In 2014, BTC price fell by 84% from its previous high and “as for the most recent price crash … the most important part is that the price has started to rally [again].” Because bitcoin price “broke its longest streak of monthly losses,” Aslam believes it’s “the strongest signal” of the beginning of another crypto bull market.
