(NEW YORK)–After the recent crash in both the market and crypto currencies a bottom may be trying to form in Bitcoin prices, which could provide a buying opportunity for Bitcoin stocks again.
Ludlow Research stated in note to subscribers that Bitcoin’s recent bounce off $6000, and consolidation around the $7000 to $8000 level could be an indicator of a potential short-term floor in Bitcoin, and thus could provide an opportunity to look at Bitcoin stocks again after their recent correction.
As the market began selling off on fear of rising interest rates some traders used their Bitcoin crypto holdings as first source of liquidity to build up cash positions, and for potential margin calls.
Bitcoin, along with the overall market, was extremely over bought, so in long run this sharp drop in crypto currencies was actually a healthy event to help wipe out the excess speculation that had been built up in the market over the prior few months.
Ludlow Research says there very well could be a re-test of its recent lows around the $6000 mark, but any hold of that bottom could place new bids and retail interest back into the Bitcoin stock sector.
Bitcoin may have formed a floor around the $6000 mark, but don’t look for it to suddenly begin a frenzied run like we saw before, but rather steady consolidation between $7000 to $9500 for a period to help build back confidence in the market would be the best thing.
For this reason traders may want to start looking at some Bitcoin stocks again as many of these are trading in some instances 50% to 70% off their recent highs.
Bitcoin Stocks to Watch
– Riot Blockchain (RIOT)
– DPW Holdings (DPW)
– Marathon Patent Group (MARA)
– Integrated Ventures (INTV)
– ChineseInvestors (CIIX)
– AppSwarm (SWRM)
– Epazz (EPAZ)
About Ludlow Research
Ludlow Research is a New York based equity research firm that focuses on providing research coverage and investor awareness services to emerging small-cap companies. For over 12 years we have worked to provide our readers with a simple way of evaluating the current and potential value of small-cap companies, while garnering these clients greater market awareness to new investors. For more information please visit www.ludlowresearch.com