Investor's view: The $ 6200 drop can trigger bullrun. If it comes, let it be gradual

Investor's view: The $ 6200 drop can trigger bullrun. If it comes, let it be gradual

By xlubecx | free life | 13 Apr 2019


Significantly strengthening the Bitcoin price in the previous week leads to a change in market sentiment. It is speculated about when bullrun can start and what it might look like.

Vinny Lingham, a general partner at Multicon Capital and also CEO of Civic, thinks that if Bitcoin can get over $ 6200, it may be a potential signal for the start of a new bullrun.

"If he can overcome $ 6200, it will probably be the start of another bullrone, which can be very hot and go high. However, if it is only pure speculation and the cryptocurrency will profit without reflecting their real value, it will probably not end well again, ”he said.

The Lingham team says that while Bitcoin's price may increase significantly during the bullrun, it doesn't have to correspond to the increase in adoption and fundamentals of other cryptocurrency that will follow.

“Many people believe that cryptowinter is over. I'll share some of my thoughts with you. Apart from graphs and technical data, I don't think this rally is sustainable for one reason. The market has not yet separated other cryptocurrency directly from Bitcoin. This means that if the Bitcoin price increases, so does the price of other cryptocurrency, regardless of their true value. This is a key point - Bitcoin could double its value per night, but that also means that other assets, even though they have not changed in terms of their development, "wrote on Twitter.

A further increase in Bitcoin price is supported by several technical indicators, such as the 200-day moving average (200MA), the 200-day single moving average (200SMA), and the exponential moving average. Although Bitcoin climbed quite easily from $ 4,200 to $ 5,000, it was supported by several different factors, including the destruction of hundreds of millions of dollars in shorts that acted as growth incentives.

April 4, Bitcoin Futures Market at CME recorded a record volume of 22,542 contracts, which is $ 546 million. This is more than the full daily volume of Bitcoin trading on the stock exchanges (if the data of unregulated stock exchanges, which are likely to be falsified, but taking into account the data from Bitwise Asset Management). If he repeated such another similar day at CME, it could act as a strong catalyst for the further growth of Bitcoin prices.

ProChain Capital President David Tawil told Bloomberg that if Bitcoin's price is to grow, it would be much better if it were a gradual growth, unlike the very fast growth we saw in 2017. "It is nice to see a positive hint on the market , specify. But at the same time, it is important to realize that investors do not have such a rapid growth (eg from 4200 to 5000 notes) very comfortable. In fact, investors would rather see a gradual growth with constant "floors" and possible downturns instead of seeing very fast growth up. That can come quickly but also quickly. ”

It is equally important to consider the possibility of increasing capital inflows from institutional and accredited investors that are clearly entering the market. The Grayscale Bitcoin Investment Trust (GBTC), a regulated market that allows accredited investors to trade Bitcoin, recorded a 10 percent increase in just one day, indicating that the interest of the institution and accredited investors in recent times is evident.

 

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xlubecx
xlubecx

i am cryptocurrency trader


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