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Bitcoin Is Up 30% From Its Recent Low. What Lies Next?

Bitcoin Is Up 30% From Its Recent Low. What Lies Next?
19 Jul
5:14

Bitcoin has rallied in recent weeks. Shutterstock

Bitcoin has enjoyed a resurgence lately, climbing more than 30% after hitting a local low below $5,800.

Yesterday, the world’s largest digital currency by market value reached $7,574.90, according to the CoinDesk Bitcoin Price Index (BPI). 

At this price, it had climbed roughly 30.9% from the June 24 low of $5,785.43, additional BPI figures show. 

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

However, experts provided mixed views on whether Bitcoin has finally broken its bearish trend.

“Bitcoin has indeed bottomed out,” said Marouane Garcon, managing director of crypto-to-crypto derivatives platform Amulet.

“The key indicator is the amount of volume that has entered the market over the last two days. We haven’t seen volume like this since May.”

Charles Thorngren, CEO of Noble Alternative Investments, offered a similar point of view. 

“I do agree that we have seen a bottom with a attractive uptrend in the works,” he said.

Thorngren offered some technical analysis on the subject, stating:

“If you look at the recent pullback you can categorize it as either a Triple Bottom or as it looks now a Falling Wedge. Both of which are strong Reversal Patterns it would seem that higher prices are headed to the Crypto Markets.”

Air Of Uncertainty

However, not everyone feels the same way about Bitcoin’s current situation, with some analysts asserting that we cannot yet call an end to the bearish trend that characterized the digital currency for several months.

“I think calling a bottom, especially now, would be premature,” stated Yazan Barghuthi, CEO of Jibrel Network

The recent upward trend was largely driven by a substantial short squeeze,” he asserted.

“While some may see this surge as a trend reversal, my feet, as well as others active in this space, are still firmly rooted in ‘wait and see’ territory.”

Vinny Lingham, co-founder & CEO of Civic.com, also voiced his doubts.

I’m concerned that the bounce off the lows wasn’t sharp enough, so not willing to stand behind a call that it’s a bottom yet, but I think it’s obviously possible.” 

Potential Pullbacks

A handful of market observers emphasized that they are on the lookout for further losses in Bitcoin before declaring that the digital curency has entered a new trend.

“We expect one more drop into the 6s and then a slow recovery toward the end of Q3,” stated Tim Enneking, managing director of Crypto Asset Management.

Jon Pearlstone, publisher of the newsletter Cryptopatterns, also weighed in on a potential decline in the short-term. 

While Bitcoin spiked lately, the digital currency has begun “consolidating,” he noted. Pearlstone added that:

There are multiple indicators that the next move will be a pullback to the technical breakout level of $6800.  A good sign Bitcoin has bottomed out and we’re starting a new upward trend would be a bullish ‘surprise to the upside’ where we don’t see a meaningful pullback until much higher price levels.   That’s what most of 2017 looked like and not at all what 2018 has looked like.

Disclosure: I own some Bitcoin, Bitcoin Cash and Ether.

Source: https://www.forbes.com/sites/cbovaird/2018/07/19/bitcoin-is-up-30-from-its-recent-low-what-lies-next/

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