Bitcoin is on fire right now. Over the last few days, it went over USD 8.000,00 in price. That makes a 125% comeback for the year so far. It’s now lying slightly under its yearly peak, so the market is optimistic, demand is high, trade volumes are high, and crypto aficionados are happy. But some experts think that a correction could still be in the cards.
GRZ Energy’s Anthony Grisanti made an appearance on CNBC’s “Futures Now” to talk a little about Bitcoin’s current and futures markets. He explained that “We had rallied above [key resistance] but then failed on two different occasions,” he then added” [Bitcoin] has doubled in the last five months, so I would expect a bit of a pullback, and on the downside, there’s a fascinating gap there, from $6,870 to $6,425. […] If we start getting some profit-taking in this market, it will fill in that gap, but that’s actually very healthy for markets going forward,” Grisanti said.
The technical indicators point to a pullback. However, Bob Iaccino, chief market strategist for Path Trading Partners, says that the current momentum in Bitcoin is not your run-of-the-mill situation. There’s a critical synergy operating in the system that could alter the environment significantly. Thus Bitcoin could evolve into an asset more friendly to consumers and businesses. If institutional investors construe the new environment in that way, that could render amazing results in terms of the market price.
“I do believe I know part of the reason why [Bitcoin is booming], and that has to do with the inception, and the application of software called the Lightning Network, which actually makes small transactions a lot easier for those who hold bitcoin,” remarked Iaccino. He went on to talk about Bitcoin’s network improvements,
“Where you look at Visa, who can transact 65,000 transactions per second, Bitcoin’s [prior level] was about seven, and now with the implementation of the Lightning Network, which is a software add-on, you can actually get these smaller transactions off the blockchain network, making adoptability of bitcoin as a currency a lot easier.”
What should we all make of this? We’ve all been expecting the new cryptocurrency bull run, after those terrible 18 months we had since December 2017. That puts us in a bit of danger of being overoptimistic about the current Bitcoin surge. Yes, BTC has been advancing steadily for more than a month now. But even the most optimistic observers (think Willy Woo) are still not persuaded that the next massive bullish market is here already.
If we are in the new crypto summer, we will find out sooner rather than later, and there will be plenty of chances to make profits whether by trading with Bitcoin and even with some of the lesser known altcoins. When the time comes, we’ll be sure to let you know but, for the time being, caution is still adviced. Which doesn’t mean you should keep off the market, just to make sure that your wishful thinking is not getting the better of your judgment.
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Disclaimer: All information provided through this article should not be regarded as investment advice, nor should be taken for granted for crypto trading purposes. Before making any investment or trading plans, make sure to inquire about the information diligently by carrying out your very own research. Thank you.