Clem Chambers, market analyst and CEO of global finance tracker ADVFN, believes the crypto industry is still searching for its “killer app.”
He says anything can happen to Bitcoin in its quest to become a leading form of digital money and a store of value – and at this point BTC will either shoot to the moon or fall off a cliff.
In a new article at Forbes, Chambers writes,
“It’s a great market to trade, if you want to play that game and you are great at it. Trade away. But if you want to invest or dump Bitcoin the decision remains simple.
Bitcoin (BTC) [will either reach] $100,000-plus or $0. Pick your side and invest accordingly as [there’s] no mid-ground.”
Chambers says he’s not selling his Bitcoin holdings because his strategy involves buying, holding and buying more at lower prices.
He predicts that if BTC sinks below $7,500, then there will be “another big drop” on the horizon.
But he believes a recovery back to all-time highs is more likely, and BTC could again cross the $10,000 mark in the short term.
“Bitcoin has crashed [before] but it doesn’t seem like ‘the end’ to me, just a nasty pullback and a delay to the great day Bitcoin runs past $20,000.
It’s very ho-hum when you look at the Bitcoin slumps of the past.”
In the end, Chambers says timing the market is likely to difficult for most traders, who risk missing out on Bitcoin’s big and highly volatile moves to the upside.
“The trouble is not getting out, it’s getting back in that is tricky. It only takes a few days of hesitation to miss the boat when Bitcoin moves up and if you get into the ‘market timing’ game it’s hard not to be whipsawed to death or end up nursing a small profit as you watch the main chance run away from you.
Market timing is incredibly difficult, especially in a hugely volatile asset like Bitcoin.”