Bitcoin Price: Bears Resisted $10K – It’s Overvalued, Analysts Say

Bitcoin Price

Bitcoin price (BTC) has been struggling to reach the $10K mark over the last two months despite BTC moving beyond the $9,900 level several times during the weekend. Bears have successfully defended the $10K spot as Bitcoin price plummeted below $9400 level in this mornings trade.

The bull-run in the largest coin that started on Thursday, lost its momentum early today. Goldman Sachs increasing involvement in cryptocurrency along with the developments in altcoin blockchain technologies supported the latest uptrend.

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Bears, however, are focusing on a “caution” rating issued by a Wall Street first analyst who covers bitcoin price and other cryptocurrencies. They are also giving vital importance to what Warren Buffett had said about bitcoin and cryptocurrency markets being more akin to gambling.

Wall Street Analyst Suggest Hurdles

DataTrek Research co-founder and Wall Street analyst Nick Colas sees a bleak future fundamental for bitcoin price. He believes that bitcoin price is overvalued after the recent rally – which pushed its price from $6,400 to $9,900. He has presented several arguments to support his claim

Nick Colas said: “It was absolutely a bubble based around the futures launch in December and a lot of enthusiasm for the asset. Who owns a cryptocurrency basket worth about $2000?

The declining trader’s interest in the cryptocurrencies sphere makes it difficult for bulls to extend the rally, the Wall Street expert says. He has based his argument using Google search trends and Blockchain wallet growth trends.  

He added, “In terms of Google searches, they are way down from the peaks back in December and January — like 85 to 90 percent. The second issue is that we’re also not seeing a lot of wallet growth,” he noted. “Growth in wallets is just 2.2 percent last month. It was 5 to 7 percent per month all of last year.”

Featured Image: Depositphotos/© IgorVetushko

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