Latest Jump in Bitcoin Not Enough to Convince Certain Experts
Starting last week, Bitcoin has been seeing decent gains in its price, climbing up to $7400 as supporters, investors and coin holders celebrate the relieving bullish climb. As any crypto-bull will say, the last few months have not been easy on Bitcoin and most cryptocurrencies giving the incredibly heavy bear market. While this is a step forward for Bitcoin, experts were not so convinced of its bullish climb.
Bear to Bull
Giving the recent changes, some Bitcoin bear experts have accepted the reversal while a few continue to remain bearish about the whole situation. Arthur Hayes, the Chief Executive Officer of BitMEX is a key expert among the unconvinced party. During an interview with CNBC, the CEO stated that almost $230M had been liquidated as a result of Bitcoin’s incredibly short window where it climbed from its previous resistance at $6800 to a new price of $7450 in just about half an hour.
Several notions regarding the climb in price and bull run suggest a potential ploy by the bull market to maximize on Bitcoin acquisitions before another drop in price occurs. Other than it’s latest and unpredicted climb in value, several experts believe the leading cryptocurrency will drop back to $6800. Despite the theories flying around, the coin has tested its new resistance at $7500 and currently remains cemented between $7300-7400 in price.
One theory by the bearish market is that the reversal is an elaborate scheme by bulls to draw in potential investors as a means of gaining as much from the coin before its next drop. Despite the theories, no actual evidence exists to back them up. Several other experts are more optimistic, expecting a possible $10000 surge in price during this bull run.
A drop before a climb
Arthur Hayes is one of the believers behind the possible $10K climb, although he has consistently stated that before Bitcoin can climb to such success again, it’ll first drop to a new support of $5K. Despite dropping under $6K earlier this month, he believes it hasn’t reached its lowest.
Speaking in the interview, he explained his desire to test the $5K support as a means of dictating whether the coin has bottomed out or not. Standing by his reasoning, the CEO says that Bitcoin should drop to that level as a result of a lack of proper responses by the market in regards to several attacks, whether through malicious activity or official regulatory bodies. A certain trend among the market is the consistent hesitance when dealing with BTC and how any public announcement has caused prices to drop exponentially.
As of now, Bitcoin is still incredibly far from its 2017 all-time high of almost $20K. Bitcoin has been referred to as “digital gold”, although the coin covers a tiny percentage of a $7T market. With a total market cap of $280, this provides another reason for why Bitcoin has a long road ahead of itself.