What Bitcoin Needs to Become Bullish Again?
Bitcoin cannot exceed the $6000 level for long time. The recent drop on July 10th returned the price of Bitcoin to this year’s minimum. With this context, investors retain panic feelings as they are afraid that Bitcoin sell out will never end. Nevertheless, Todd Colvin, analyst at Ambrosino Brothers tells that significant changes may happen on the market, leading to bullish Bitcoin growth.
He thinks that Bitcoin lacks one important component – clarity. To begin growing again, BTC needs clarity in such areas as security, regulation and accessibility. However, these changes are very unlikely in the nearest future.
“After the move we’ve seen it’s very difficult in the short term to be bullish.”
Regarding longterm prospects, better regulation and security should change bearish mood on the cryptocurrency market and raise the price of Bitcoin.
Issues with security systems, successful hacker attacks – all this negatively affects cryptocurrency prices. According to the analyst, these problems were the cause of the recent Bitcoin price drop to almost $6000. In particular, bad news from Coinrail and Bithumb in the beginning of June became the trigger.
“The things that cause these bear markets, when you have these, ‘Oops, somebody robbed my wallet off an exchange’.”
Government regulation also concerns investors much as crypto enthusiasts promote ideas of independence and absence of barriers. Todd thinks that more clarity in this situation should improve the price of Bitcoin.
“Right now the government doesn’t really know how to define or quantify what bitcoin is. They don’t call it a security, so it doesn’t fall under the SEC umbrella. It’s still very confusing.”
The next psychological level for Bitcoin is $5000. The cryptocurrency did not drop lower than $5000 since October 2017.
“Five thousand [dollars] is definitely a line in the sand where I think sophisticated investors will step in.”