About a year back, just a few days after bitcoin reached the all-time high of $20000, Mark Dow, an outstanding hedge fund manager entered a short position and posted a blog to strike the bitcoin market hard. Mark finally closed his position yesterday which is being called the best Bitcoin trade ever.
In the article titled “So, you want to short Bitcoin? Here’s your Road Map” Dow mentioned that cryptocurrencies are currently situated in a bubble and a drastic correction is about to happen. Daw mentioned that bitcoin is not a perfect medium of exchange also comparing the bitcoin market to the Dotcom Bubble.
Mark told Bloomberg that after taking profits twice this year on the position, he has now decided to close it down. Although he did not mention if he believes that the bitcoin market is going to boom soon. According to Mark, the Bitcoin price rally in 2017 was because, at that time, the people did not understand the digital currency or the technology behind it. In the conversation with Bloomberg, he said:
I’m done. I don’t want to try to ride this thing to zero. I don’t want to try to squeeze more out of the lemon. I don’t want to think about it. It seemed like the right time.
Mark Dow also tweeted about the same yesterday:
— Dow (@mark_dow) December 18, 2018
Bitcoin going to rise more:
Bitcoin began its recovery on Monday this week. Prominent analysts are predicting that the Bitcoin bear market has finally come to an end at least for a short term before bitcoin reaches above $4600. Bitcoin is currently trading at $3959 at the time of writing (according to Bitfinex Chart). According to analysts, the price of bitcoin will see a significant recovery above $4000 up to $4600 where the key resistance lies. After reaching up to this point, if bitcoin is able to break the key resistance it can rapidly increase up to $6000 in a short period as there is not much resistance between $4600 and $6000. But if bitcoin is not able to break the key resistance it can experience a bearish momentum. For now, analysts are predicting bitcoin to reach between $4500 and $4600 soon.