Weiss Ratings has tweeted out that the current technical setup of Bitcoin present the best purchasing opportunity for investors since 2015.
The popular rating organisation have based their assessment on an analysis from their main analyst, Juan Villaverde.
Our chief crypto analyst Juan Villaverde predicts: Bitcoin correction and the best buying opportunity since 2015 are upon us. Here are the juicy details: https://t.co/VKVlPUmkeR#crypto #cryptocurrency #altcoins #bitcoin #BTC— Weiss Ratings (@WeissRatings) May 23, 2019
According to Villaverde, a similar price action occurred in both 2012 and 2015 as the analyst explained:
“In January 2012, for instance, after Bitcoin has rallied to $7 per token from its bottom of $2 just months earlier, Bitcoin suffered a 45% correction down to about $4. But that was a launching pad for a bull run that would take Bitcoin into four-digit territory for the first time in its history, hitting a high of almost $1,200 by December 2013.”
Will History Rhyme?
Investors will most likely be worried about whether history will rhyme as the phrase “past performance is not indicative of future results” comes to mind.
As reported by Bitcoinist:
“Villaverde addresses this valid concern by pointing out that that Bitcoin’s fundamentals have improved significantly over the past year and the fact that Bitcoin usage is near all-time highs, with daily transaction volumes nearly reaching levels not seen since late 2017 is encouraging.
According to him, Bitcoin’s 24-hour transaction volume recently reached a 2019 high of 450,000 and the previous all-time high occurred on December 13, 2017, just a few days before prices reached $20,000.”
On top of this, Weiss highlighted that fees on the Bitcoin network remain at their lowest levels since August 2017 despite the consistent increase in transaction volume. Villaverde explained that there was a negative correlation between usage and fees and this is proof that upgrades like SegWit and the Lightning Network were vital in making this possible.
In the end, Villaverde encouraged traders to focus on being optimistic and reiterated that the most recent major rally confirmed the beginning of a bull market, Bitcoin’s fundamentals have improved the point of support increasing price and he cautioned investors to be wary of looming corrections.