BTC has bottomed out but it takes 22 years to reinvent the conclusion of Gaorui Silver against a variety of bubbles.

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UBS analyst: Bitcoin prices have bottomed out

UBS analyst Kevin Dennean said Bitcoin has bottomed out and has passed the bubble phase.

Dennean's conclusion is obtained by comparing bitcoin price trajectories with other bubbles such as Dow Jones, A-shares, Nasdaq and Nikkei.

Dennean commented on the results of the comparison:

"My argument is that Bitcoin has gone through a bubble phase, ready to be reborn from the ashes like a phoenix nirvana, as it did in other assets and indices in the past."

The study from UBS has become the latest argument for the return of Bitcoin, the world's highest market capitalization cryptocurrency has established a long-term bottom. The performance of Bitcoin in 2019, especially in April, seems to have reignited a debate around the bottom of Bitcoin prices.

Bitcoin has risen more than 40% since the beginning of the year. Despite several callbacks in the past week, the price of this cryptocurrency seems to remain at $5,000.

Bitcoin compared to the stock market bubble

It takes 22 years to return to the new high

Although UBS's "bitcoin has bottomed out" research conclusions are similar to those of many cryptocurrency stakeholders, Dennean reports that Bitcoin will hit a record high in 22 years.

This timeline also comes from comparing BTC and the above stock market. According to Dennean's report:

What shocked us was how long it took for other asset bubbles to return to their peak levels (Dow Jones industrial als for 22 years) and the annualized return from the trough to recovery. It is usually so bland.

Although Bitcoin's decline from the peak to the bottom is similar to NASDAQ in 2000 and Dow Jones in 1929, Bitcoin has experienced this before.

In every past recovery, BTC has not only rebounded, but has also reached several new highs in the next few years.

Bitcoin price crash

Dennean's research seems to only compare the 2018 stock price crash with the famous stock market crash. Bitcoin has experienced five “bubbles”, including a 93% drop from June to November 2011.

However, the rise of Bitcoin in the past 10 years is unprecedented. Nothing is faster and grows faster than this – making it impossible for even the most successful companies and innovators.

Original: https://bitcoinist.com/bitcoin-bottom-is-in-but-theres-a-catch-says-ubs-research-analyst/
Author: OSATO AVAN-NOMAYO
Compile: Kyle
Source: Babbitt Information (http://www.8btc.com/bitcoin-bottom-is-in-but-theres-a-catch-says-ubs-research-analyst)

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