Timothy Enneking Says It’s Not Yet Time To Buy Cryptocurrencies
In a recent article, Timothy Enneking says that it’s not yet time to purchase virtual currencies. At least not quite yet. Mr. Enneking is the founder and the primary principal of Digital Capital Management.
He started the article by saying that two members of the Rothschild family said: “When there is blood in the street.” The Rothschild family has been one of the richest in the world for around 200 years. Enneking asks himself the question whether there is enough blood in the streets right now to start buying Bitcoin (BTC). For him, the answer is ‘not quite yet.’
He arrived at such a conclusion after analyzing the past behavior of Bitcoin in the market. He explains that in Bitcoin’s history there are no drops between 57% and 82% between peak and bottoms. Thus, he takes all the drops of more than 80% to start his analysis.
That means that there are four drops larger than 80% in Bitcoin’s history. The bottom of these bear markets was reached in 2011, 2013 and 2015. In 2018 we do not know whether we have reached yet a bottom or not. The drop has been 93.6%, 82.6% and 86.9% respectively. During the current bear market, Bitcoin plummeted 83.4%.
Enneking says that the last drop is not yet over. In order for this to be the second largest drop in history, Bitcoin would have to drop down to $2,553. Additionally, if the current trend is the hardest ever registered, Bitcoin would have to fall down to $1,239.
He went on saying that the average time for the price to double from the bottom is four months. In order to keep recovering, Bitcoin needed an average time of one year and four months o reach the prior peak. However, once this peak is reached, for it to double are necessary two months.
He analyses whether we’ve reached a bottom or not. He says that Bitcoin usually reaches a peak or a bottom with a spike. This violence, according to him, can be measured, allowing us to understand if we are in a breaking point of not.
Now the question is when capitulation will take place in the market. He believes that capitulation will be obvious to everyone when it will happen. However, there is a small chance for Mr. Enneking to have a bottom close to $2,800. He does not discard the possibility of reaching $2,000 as well within a month or two.
Enneking is sure that Bitcoin and virtual currencies are going to play an important role in the financial world in the future.
About it he wrote:
“I remember almost six years ago when I first heard of Bitcoin and cryptocurrencies. I wasn’t convinced they would survive. After a year or so, survival wasn’t an issue, but scale and importance were. Now it seems clear to me that crypto trading tokens and Bitcoin are here to stay and that they will eventually play a non-trivial role in the financial system.”
At the moment, there is a lot of infrastructure being deployed and created by many developers and investors. There is also a lot of people that have a lot of influence in the market.
We could be close to a bottom, says Enneking. However, ‘there is not yet enough blood running in the crypto streets to simply start to buy bitcoin and other tokens.’