In a recent interview with Peter McCormack on Whatbitcoindid podcast, Tuur Demeester spoke about Bitcoin’s current market situation and the various aspects that impact the virtual asset’s market.
Tuur spoke about the Bitcoin’s current valuation and indicated that it was presently dictated by the accumulation of Bitcoin. He stated that the market was in a state of battle between the bears and bulls where the sellers are looking at how many Bitcoins are left in ICO treasuries. He believed that till the time Bitcoin traded in the range under $6500, it would be indicative of an accumulation stage.
He added that the market might navigate through some painful maturation in the upcoming period, like the Mt. Gox situation. He explained that the concentration of the larger amount of Bitcoin [BTC] in exchanges, organizations which were looking forward to pooling the asset, is an extremely risky condition. In a situation where those coins were stolen or new regulators freeze the assets, it could drastically spook that market.
Tuur further expressed his sentiments and indicated that according to him, the market remained highly volatile. However, he believed that Bitcoin [BTC] remained in a secular bull market since the inception of the coin and hence, he did not prefer the idea considering the impact of “discount bullish scenario.”
“I am not ready to say yes, that we are in a new bull market but I do definitely think that we are in the last phase of the current bear market.”
Additionally, Demeester stated that it was “dangerous” to rely on past patterns for future indications as the market can never be entirely replicated. The historical data based on technical analysis will only give the users hints of what situations might surface, but it is always based on a probability game.
Tuur emphasized that it was important that people do not rely on a single source of data like for example, only the price. Factors like long-term behavior, current market sentiments and retail activity in the market should also be considered.