Many cryptocurrency experts agree that Bitcoin moving towards a breakout. It remains to see which way. Consider the opinion of some of the analysts.
Bitcoin’s activity was suppressed
Although this week there have been some regulatory updates, the widespread uncertainty about how government agencies will treat these assets in the future, prevents Bitcoin trading, reduces volumes and reduces volatility. As a result, the world’s most significant digital currency was trading in a relatively modest range, fluctuating between $ 7,400 and $ 7,800, according to the CoinDesk price index.
Bitcoin reached a 3-week high of $ 7,768.93 after he fell to $ 7,392.25 on June 1.
Several analysts talked about relative calm in Bitcoin prices, emphasizing that this general malaise was a symptom experienced by broader cryptocurrency markets.
“It seems that a lot of activity has been suppressed”
said Marshall Swatt, founder and president of the Swatt Exchange, stressing that selling digital tokens have the same experience.
It seems that recently trade has declined, stressed Mati Greenspan, senior analyst of the social platform market eToro.
Investors pending regulation
Marius Rupsys, digital currency trader and investor, suggested a slightly different attitude to the situation.
“Some traders and investors are waiting for clarity from regulators,” he said.
Nevertheless, Rupsys described the statement made by the Chairman of the US Securities Commission (SEC) Jay Clayton that bitcoin is not a security but the decision of the government agency to appoint the bitcoin as “very positive” events.
Also, the SEC clarifies its position on the ICO, stating that most tokens issued through these sales are securities, he noted.
“This gives confidence SEC is being open in presenting their position regarding crypto assets. I view this as very positive news”
Bitcoin moving towards a breakout
Several technical analysts talked about recent price fluctuations for Bitcoin, claiming a possible breakthrough in the world’s most considerable digital currency.
“Bitcoin has spent the last week hovering in the mid $7000s on unusually low volume as traders take a ‘wait and see’ attitude,” said Jon Pearlstone, publisher of the newsletter Cryptopatterns.
“This ‘tight range’ set up usually results in increased volatility as price breaks to the upside or breaks down,” he added.
“In the current set up a clean breakout above the $8400 level
“with strong volume should bring another test of the key $10,000 level”
Nevertheless, he stressed that “If price breaks down hard through $7000 it’s likely we’ll see a test of the 2018 lows at the $6000 level.”
A favourable background for Bitcoin’s growth
David Johnson, CEO of Latium’s cryptocurrency processing platform, also spoke about the technical characteristics of Bitcoin.
“The clarity provided by the SEC is certainly a positive for Bitcoin and should provide more overall buying support. Bitcoin has been consolidating for the last two weeks and, in my opinion, is moving towards a breakout. Currently, $7k is a major support level, and if broken we could see $6.6k very quickly.
“A sustained price above $8k should signal a move to $9k shortly thereafter”
In fact, most agree with the fact that Bitcoin moving towards a breakout and it is desirable for the entire cryptocurrency market so that this breakthrough was up.