The bitcoin expert and senior market analyst at eToro, Mati Greenspan, explained that Bitcoin’s behavior is completely normal and that after reaching historical highs of around 20k a drop like the one seen during the first quarter of 2018 was to be expected. [1]
In an interview for The Express Mr. Greenspan mentioned that technical analysis better explains the reasons for the fall in Bitcoin prices than fundamental analysis.[2]
“I believe that more than fear of regulation that decline from the 20,000 peak was more of just a normal retracement.”
Mr. Greenspan is a fervent advocate that markets move in trends and cycles, so a behavior as bullish as that seen during the last quarter of 2017 could only have a subsequent bearish after-effect. For him, this type of “retracement” had already occurred on previous occasions, to give rise to a greater bullish impulse later:
“Whenever the price moves and jumps into a new order of magnitude, we need to see some sort of retracement on that. It’s the same thing that when it jumped up from eight cents to $3.50, then it had a retracement back to a dollar, that’s a very normal thing after that kind of leap. So if we look at it now, I believe we are about five or six percent up over the price a year ago.“
For Greenspan, expectations are very high. According to his comparisons, Bitcoin is in a better position today than in previous years, which “without a doubt” implies a reasonable probability that bitcoin will beat last year’s all-time high.
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