Although the price of Bitcoin is still 75 percent off its peak value, it has recorded steady gains from its last drop. Bitcoin is now above the $5,000 mark. Certain analysts see Bitcoin as a massively undervalued asset.
According to a firm operating a Bitcoin alpha fund, Adamant Capital, Bitcoin (BTC) hodlers are at an ‘accumulation phase’ indicating the end of the bear market. In its recent report, the firm is calling upon whales to take action and accumulate some more Bitcoins. The authors of the report argue that Bitcoin bulls are seeking a stable ground before charging.
It’s The Accumulation Phase For Bitcoin As An Asset
A tweet from Tuur Demeester, one of the authors, and a section of the report read:
“Bitcoin in heavy accumulation. During this accumulation phase, we expect for Bitcoin to trade in a range of $3,000 to $6,500 until the new bull market permanently cements the denarian cryptocurrency as a multi-trillion-dollar asset class.”
The report added that the next bull run in the cryptocurrency market will proportionately level up with the assets in the capital market. The report blamed losses incurred by cryptocurrency investors in 2018 to massive selling by Bitcoin hodlers. In two days, the report noted, 70,000 bitcoins had been destroyed.
“We are back in the undervalued territory,” the report noted adding that the price of BTC may fall back to its November 2018 lows with the current low volatility indicating that “happy retail speculators and agnostic traders and long-term value investors are in.”
Although Bitcoin is already strongly testing a higher price, investors who buy when the prices are low need to accumulate Bitcoin at a higher rate to trigger the next bull run. This, according to Adamant Capital, will see the price of BTC hover over a given range for a prolonged period.
Since the advent of Bitcoin and other virtual currencies, the crypto space has been developing at a high rate. Since the report analyzed the Bitcoin trend since 2015, its prediction of a bull run seems to have a high level of accuracy.