With bitcoin currency currently sitting at above $8,000, there have been reactions and talks about the coin’s ability to maintain the price level and break through. Speaking on a CNBC panel on May 15, 2019, two analysts predict that bitcoin’s fatigue could possibly cause a price pullback despite its current surge.
Bitcoin Price Could Fall Back to $6,000
The current surge in bitcoin price caused a stir in the crypto community, after suffering an 80% market correction in 2018. With the ice of the 2018 crypto winter finally melting, analysts and enthusiast alike are already predicting high figures for the number one virtual coin.
Commenting on the current price surge, Anthony Grisanti of ERZ Energy who is foreseeing a price pullback said:
“We had rallied above [key resistance] but then failed on two different occasions. [Bitcoin] has doubled in the last five months, so I would expect a bit of a pullback, and on the downside, there’s a very interesting gap there, from $6,870 to $6,425.”
Grisanti further states that if traders start showing interest in profit-taking beyond $7000, it could cause a downward strain on the bitcoin price movement. However, the continuous bearish attitude from CNBC would most likely cause a surge in price growth instead of a pullback.
Lightning Network Makes Bitcoin Adaptability Easier
Bob Iaccino of Path Trading Partners also stated that there was a reason behind the surge in bitcoin. Traders who bought during the market dip in 2016 and sold at the peak of 2018, are back to the virtual currency market. According to Iaccino, the bitcoin boom is as a result of the application known as the Lightning Network (LN).
In Iaccino’s words:
“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”.
Iaccino goes further to compare Visa to Bitcoin, saying that in the past, Visa could carry out 65,000 transactions per second, while bitcoin could handle just seven. But the LN application makes smaller transactions faster and adaptability of bitcoin as a currency easier.
Bitcoin Price Action – Retracement or Parabolic Advancement?
Going by previous experience, it would be difficult to sustain bitcoin’s current price action. If a pullback does occur, that would mean that the CNBC analysts’ prediction of bitcoin price falling within $6000 would come to light. Bitcoin trader, @CryptoFibonacci, put up a price chart on Twitter which showed that a price retracement would most likely occur.
The current bitcoin price rally has ignited hope in the crypto community, with Gemini co-founder, Tyler Winklevoss, showing optimism via a tweet which stated this is different this time around, and it’s only the beginning.